Access to Alpha

Ian Venzon with Pence Capital Management recaps why the 2026 midterms may create political noise, but unless they materially change the outlook for earnings or AI investment, investors are likely better served by staying focused on fundamentals rather than election results.

The S&P 500 managed to post another quarterly gain, but investors may be wondering if the market is really playing its best game. Portfolio Manager Anthony Brooks examines why large-cap technology did most of the heavy lifting, why higher rates and tougher questions around AI are raising the stakes, and why strong earnings may not be enough to keep the market’s winning streak alive.

Liridon Gila, Portfolio Manager, breaks down August’s S&P 500 rally and the rotation away from semiconductor concentration toward the quality factor and enterprise software. He dives into the big macro drivers shaping the landscape—from a hawkish Fed stance at Jackson Hole to the sustainability of historic AI capital expenditures driving strong earnings growth.

Equity markets took pause in July as investor concerns about AI spending and the eventual path of interest rates left investors more uncertain about the continued pace of gains. Marc Davis, CFA discusses the factors that drove market action in the month and the outlook going forward. 

We are pleased to present this five-minute podcast featuring Ian Venzon, Assistant Vice President at Pence Capital Management (PCM), highlighting how markets have continued to perform strongly despite economic and geopolitical headwinds.

KEY TAKEAWAYS:

• Despite a challenging backdrop, the S&P 500 Index reached record highs in the first half of 2026, with broad-based gains across global markets.
• Through June, the S&P 500 gained more than 8% as earnings expectations rose over 20%, supported in part by nearly $750 billion in additional AI-related capital investment.
• As we enter Q3, strong earnings, lower oil prices, a stabilizing labor market, and supportive tax policy provide a favorable backdrop for investors heading into the midterms.

The S&P 500 cruised to its best quarter in six years, overcoming geopolitical conflict, AI growing pains, and a surprisingly hawkish new Fed Chair. Portfolio Manager Anthony Brooks takes investors on a road trip through the quarter, explaining why some AI stocks hit the brakes, why memory stocks stayed in the fast lane, and why keeping an eye on valuation may help investors avoid future traffic jams.

John Gomez, President and Co-founder of Brentview Investment Management, joins the latest Access to Alpha Podcast to discuss the similarities between 2025 and early 2026 markets and why stock selection, particularly in AI-related companies, is becoming increasingly important.

As fixed income investors reassess their portfolio allocations, Erin Spalsbury, Head of Investment Grade at Insight Investment highlights her expectations both near-term and into 2027:

• Volatility likely to remain elevated given the number of macro uncertainties 
• Federal Reserve expected to remain on hold near term, with potential cuts later in the year or into 2027 dependent upon the impact and duration of high energy prices
• Higher-for-longer rates supportive of intermediate fixed income overall, with selection and risk management particularly important in this uncertain environment. 

Liridon Gila breaks down May's strong S&P 500 rally, driven by dominant Tech and AI-led gains despite narrow market breadth. He highlights key drivers - including earnings strength, geopolitics, and macro resilience - and outlines what to watch next, from Fed policy shifts to AI capex trends.

Stocks in April staged an impressive rally as investors poured back in following a sell-off in March. The rally was broad and the largest mega caps, while showing significant gains, continued to diverge from each other. Along with positive earnings sentiment, investors are trying to grapple with the impact of continuing geopolitical developments.

Marc Davis, CFA, describes the events of the month and how Sawgrass believes the broadening trend is expected to continue, and stock selection will be of utmost importance going forward.