Christopher Battifarano, CFA®, CAIA
Chief Investment Officer
Review of First Three Quarters of 2026 and Outlook for the Remainder of the Year
We began 2026 with considerable optimism. The economy was continuing to accelerate, supported by the tailwinds of AI and data center investment, low unemployment, and inflation that appeared to be trending toward the Federal Reserve's 2% target. Nine months into the year, some of those expectations have materialized, while others have not.
The biggest surprise came on February 28, when the United States and Israel jointly embarked on a military campaign against Iran. As with several recent foreign policy actions undertaken by the Trump administration, markets initially anticipated a relatively short-lived conflict. Investors pointed to recent precedents, including the 12-Day War of 2025 (June 13-24), during which the United States and Israel conducted a series of aerial strikes targeting Iranian nuclear facilities, missile and drone production sites, and other strategically important military assets...
Christopher Battifarano, CFA®, CAIA
Chief Investment Officer
Review of First Three Quarters of 2026 and Outlook for the Remainder of the Year
We began 2026 with considerable optimism. The economy was continuing to accelerate, supported by the tailwinds of AI and data center investment, low unemployment, and inflation that appeared to be trending toward the Federal Reserve's 2% target. Nine months into the year, some of those expectations have materialized, while others have not.
The biggest surprise came on February 28, when the United States and Israel jointly embarked on a military campaign against Iran. As with several recent foreign policy actions undertaken by the Trump administration, markets initially anticipated a relatively short-lived conflict. Investors pointed to recent precedents, including the 12-Day War of 2025 (June 13-24), during which the United States and Israel conducted a series of aerial strikes targeting Iranian nuclear facilities, missile and drone production sites, and other strategically important military assets.
