September 2026 Newsletter:

In August the markets stayed away from the back-to-school blues and ended the final full month of summer on a positive note.

The month was generally positive even though there were still some geopolitical uncertainties and a mixed economic situation. Although job growth in the labour market declined, the unemployment rate fell very slightly, inflation decreased but was still fairly high, and corporate profits stayed strong, registering the highest growth rate since Q2 2021, which in turn boosted investor sentiment during the month.

The Nasdaq 100 pushed the major US stock indexes higher, rising by 4.24 per cent as the large-cap technology stocks recovered. The S&P 500, the Dow Jones Industrial Average and the CRSP US Small Cap Index also ended the month up, gaining 2.72 per cent, 1.47 per cent and 1.36 per cent respectively. Growth outperformed value during the month as a style.

The performance in international markets matched that of their counterparts in the United States. Stocks in developed countries went up by 3.26% and those in emerging markets rose by 3.01%, the increase being due to strong earnings growth and the overall risk-on atmosphere which prevailed in the global markets in August.

Bonds recorded small increases, with the total volume of US bonds rising by 0.36%. The 10-year Treasury yield experienced a certain amount of volatility within the month, caused by concerns about inflation linked to higher oil prices and uncertainty concerning the timing of rate cuts, but ended the month at the same level it had at the beginning, namely 4.75%. Although the Fed did not hold an official meeting in August, the markets are now expecting a 66% chance of a rate cut at the September meeting.

Given that we are moving into the fall, it is not unreasonable to anticipate a certain amount of volatility due to the mixed economic data, the uncertainty about interest rates, and the upcoming midterm elections. However, the strength shown in August serves as a useful reminder of the importance of sticking to a long-term plan instead of responding to short-term fluctuations. A disciplined and well-diversified strategy is still the best method for dealing with changing conditions while keeping your long-term objectives in mind.

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It didn't quite amount to the Olympics, but the robots put their best effort into it in Beijing.

The second annual World Humanoid Robot Games were held, providing a platform for android competitors to take part in events such as track and field, soccer, and even ordinary household tasks like making beds and folding laundry.

A robot has just run the 100-meter dash in a time faster than Usain Bolt's world record of 9.58 seconds, but it did not stop at the finish line and had to be carried off on a stretcher since it had collided with the wall.

Although there were plenty of moments that could be called blooper-worthy, the companies are employing the games as a way of attracting investors. The spectacular events also enable the engineers to identify design flaws which can then lead to improvements.

Yet experts warn that dexterity is still a problem. Although robots are now able to run faster than world champions, they continue to have difficulty driving a nail.

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In a world where everything is available instantly, a number of people are seeking a bit of inconvenience. Two newly launched 'slow-tech' apps are becoming more popular by sending messages in an old-fashioned manner, sort of. Both Roost and Carrier Pidge use virtual animals to send messages. The developer of Carrier Pidge stated that it took 9 hours for the first message to travel from New York to Chicago using digital pigeons, and that there is even a 0.2% chance that a message will be lost along the way. Even though the pace has been slow, both applications have secured a following since their launch in April. Together, they have about 750,000 users. The appeal is less about efficiency and more about disconnecting. It's part of a broader movement that also includes a rise in “dumb phones” and social media-blocking gadgets.

As one user put it, sometimes things are better when they're worse.

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Broad Market Returns:

S&P 500 (VOO)	2.66%	1.65%	13.08%	20.26%
NASDAQ (QQQ)	4.18%	-2.81%	16.95%	26.26%
Large Cap Growth (VUG)	3.57%	-1.41%	8.76%	15.94%
Large Cap Value (VTV)	2.23%	6.66%	18.96%	25.28%
Small Cap Growth (VBK)	2.87%	-1.40%	16.18%	20.10%
Small Cap Value (VBR)	0.27%	4.93%	17.01%	19.80%
Developed International (VEA)	3.26%	2.14%	17.54%	27.79%
Emerging Markets (VWO)	3.01%	1.19%	12.71%	20.52%
REITs (VNQ)	-2.54%	1.66%	11.12%	8.60%
Aggregate Bonds (BND)	0.36%	-0.65%	-0.18%	1.83%
Corporate Bonds (VCIT)	0.21%	-0.91%	-0.43%	1.95%
High Yield Bonds (JNK)	0.95%	0.91%	2.70%	5.18%
Long Term Treasuries (VGLT)	0.81%	-2.25%	-2.48%	0.09%
International Bonds (BNDX)	-0.21%	-0.91%	0.01%	0.83%
Data as of August 31, 2026 // Source: Morningstar

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Market Health Indicator:

The Market Health Indicator (MHI) measures market health on a scale of 0- 100 by analyzing various market segments, such as economics, technicals, and volatility. Higher scores indicate healthier market conditions.

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Fun Facts:

• Japan has come up with the greatest number of Kit Kat flavors, having released more than 400 different seasonal, regional, and limited-edition varieties.

• William Morrison constructed the first electric car to be successful in the United States in 1890, and its top speed was 14 miles per hour.

• Bottlenose dolphins create their signature whistles within the first few months of their lives and use these whistles as personal names for identification throughout their lives.

• Take a break from your strict schedule since September 5th is National Be Late for Something Day.

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The information given is not intended as investment advice; it is for educational use only. It does not constitute an offer or a request to buy or sell any securities or investment advisory services. Investments carry a risk and are not guaranteed. You should always seek advice from a qualified financial adviser before making any investment decisions.