October 2026 Newsletter:

Pumpkin spice season is back, but markets left investors with a bitter taste in September.

Markets were mixed but tilted lower during the month as economic data remained uneven. Stubborn inflation prompted the Fed to raise interest rates. Concerns about higher borrowing costs and the economic outlook weighed on consumer sentiment. Still, strong earnings from large-cap tech companies offered a bright spot and helped limit broader market losses.

The Nasdaq 100 led the way, gaining 3.30% as large-cap tech companies continued to post better-than-expected results. The S&P 500 held up relatively well, supported by its tech exposure, and finished nearly flat, down 0.35%. The Dow Jones Industrial Average and CRSP US Small Cap Index had a tougher month, falling 4.12% and 4.60%, respectively, as higher rates put more pressure on smaller companies. Growth outperformed value.

International markets also fell, without the tech boost that supported some US indexes. Emerging markets fell 1.81%, while developed international stocks declined 2.93% as higher rates and weaker sentiment weighed on global markets.

Bonds also faced headwinds in September as rising rates pushed prices down. Aggregate US bonds fell 2.61%, while the 10-year Treasury yield climbed from 4.75% to 5.29%. With inflation proving more persistent than expected, the Fed raised its benchmark rate, and investors are now pricing in the possibility of another hike in December. Shorter-duration bonds held up better than longer-term bonds, though fixed income was broadly affected.

September reminded us how quickly markets can shift when the outlook for inflation and interest rates changes. Periods like this can feel uncomfortable, but short-term volatility shouldn’t drive long-term decisions. A diversified portfolio aligned with your goals, time horizon, and risk tolerance can help you stay disciplined and navigate changing markets with confidence.

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Look, Mom—no steering wheel, no pedals, no hands.

Tesla has officially launched its Cybercab in Austin, Texas, adding the purpose-built robotaxi to a fleet that previously consisted of Model Ys.

First introduced as a prototype in 2024, the matte-gold two-seater features butterfly doors and no steering wheel or pedals. Tesla estimates that rides could eventually cost around 30 to 40 cents per mile, and says consumers may be able to buy one in the future.

The stakes are high as Tesla refocuses its business on self-driving cars and robotics. But it has plenty of ground to make up. Waymo operates roughly 4,000 driverless vehicles across 14 US cities, compared with just 500 vehicles in six cities for Tesla's fully autonomous fleet.

It’s a start, but robotaxis still have plenty of miles to go before they become mainstream.

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Put down the chatbot and pick up a pencil…

According to the OECD's latest global education report, students who regularly use AI for schoolwork score noticeably worse on exams than students who don't.

The findings come from the Program for International Student Assessment, which tested more than 760,000 15-year-olds across 91 countries.

Students who rarely or never used AI scored 509 on a test, compared with 481 for those who used it almost every day—a difference equivalent to roughly a year and a half of schooling.

That doesn't mean students should stop using AI altogether. Those who used it once or twice a week tended to outperform both frequent users and those who used it less often.

Apparently, the best study buddy is still the one that makes you do some of the work yourself.

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Market Health Indicator:

The Market Health Indicator (MHI) measures market health on a scale of 0 to 100 and analyzes areas such as the economy, technical indicators, and volatility. Higher scores indicate healthier market conditions.

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Fun Facts:

• Whether you’re feeling salty or sweet, October 7 is National Chocolate Covered Pretzel Day.

• Lightning can reach temperatures of 55,000 degrees Fahrenheit—about five times hotter than the Sun's surface.

• Research suggests that people who sleep poorly and wake multiple times during the night are more likely to remember their dreams.

• Glass sponges can live up to 15,000 years, making them among Earth's longest-living organisms.

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The information presented is not investment advice. It is for educational purposes only and is not an offer or solicitation to buy or sell securities or investment advisory services. Investments involve risk and are not guaranteed. Consult a qualified financial adviser when making investment decisions.