Broad stocks gained modestly in Q3, while bonds and US small companies struggled. I review what changed and how to approach the election without letting political convictions dictate investment decisions.

The first quarter of 2026 was a useful reminder that markets do not move in straight lines. US stocks declined, international markets held up better, and diversification once again did what it is supposed to do.

If you only looked at the year-end numbers, 2025 was a great year for investors.

US stocks finished higher for a third straight year. International stocks outperformed the US with emerging markets leading the way. Bonds also produced positive returns, as inflation fears have waned.

But the road to get here was not a smooth one.