Sarsi, LLC

10/05/2026

https://www.sarsillc.com/wp-content/uploads/2026/10/3Q-2026-Newsletter.pdf

EXECUTIVE SUMMARY

- U.S. Equity Markets held steady on strong corporate profit growth, though broader market components, value stocks, and small caps trailed as mega-cap tech giants had gains.

- International equities delivered fragmented performance. Asian markets were stable on tech hardware demand, while European manufacturing struggled under high energy costs and China faced real estate drag.

- Fixed income yields jumped sharply to historic multi-year highs. Treasuries sold off, while corporate credit held up due to solid balance sheets, higher interest rates created headwinds for borrowing costs and long-duration bonds.

- U.S. economic activity demonstrated steady strength supported by consumer spending, even as the labor market showed a moderate slowdown in hiring and wage growth.

- Artificial Intelligence capital spending expanded rapidly, funded largely by robust corporate cash flows. However, concerns regarding overall return on investment, competitive overcrowding, and equipment obsolescence remain unresolved.

- Corporate earnings delivered a strong foundation, expanding for a third straight quarter with profit margins near record peaks.

- Broad market valuations remained grounded below recent historical averages, though persistent inflation, oil price shocks, and federal deficit pressures warrant close monitoring.

- Market opportunities usually pivot toward broader technology adopters. Investors should hold core technology holdings while selectively deploying capital into underweighted value and international stocks positioning for long-term efficiency gains.

07/02/2026

Please find below the second quarter market newsletter:

https://www.sarsillc.com/second-quarter-2026-market-newsletter/

EXECUTIVE SUMMARY

- U.S. Equity Markets performed well in the quarter. The S&P 500 crossed 7,600 fueled by Artificial Intelligence capex but pulled back in June. Broader market components (such as non -AI stocks, value stocks, smaller stocks) outperformed the lagging, over-concentrated Magnificent 7 giants as profit-taking intensified.

- International equities performed unevenly; emerging Asia gained from AI hardware supply chains, while European manufacturing languished under severe localized industrial power costs stemming from Middle East conflicts.

- In Fixed Income Markets, yields ticked up and long-term bonds sold off. However, cash and shorter duration bonds helped diversified bond portfolios eke out a gain.

- U.S. economic growth remained resilient, supported by a stable employment and consumer spending. Capital expenditures expanded past technology into the physical economy, lifting core orders for primary metals and machinery.

- Corporate earnings anchored equity strength, delivering 28.6% growth in Q1 with record margins of 15.6%. Q2 projections expect growth exceeding 20%.

- The S&P 500 settled at a trailing P/E multiple of 20.1 times earnings. While historically elevated, this multiple reflects a marketplace supported by actual, tangible corporate profit expansion rather than speculative hype.

- Portfolio Construction: Successful investing balances financial science with planning art. Good financial planning ensures portfolios survive behavioral impulses and shifting market environments.

Second Quarter 2026 Market Newsletter

07/02/2026

Trump Accounts (Section 530A IRA go live on July 4th. Here are two timely articles:
https://www.sarsillc.com/a-strategic-look-at-the-trump-accounts/

https://www.sarsillc.com/how-to-open-a-trump-account/

How to Open a Trump Account

06/17/2026

The Truth About Tax-Loss Harvesting: Maximizing Benefits and Avoiding Pitfalls

The Truth About Tax-Loss Harvesting: Maximizing Benefits and Avoiding Pitfalls

05/11/2026

What should I do with my large tax refund?

What should I do with my large tax refund?

04/06/2026

First Quarter 2026 Market Newsletter

https://www.sarsillc.com/wp-content/uploads/2026/04/1Q-2026-Newsletter.pdf

EXECUTIVE SUMMARY

- Global optimism from late 2025 evolved into a more complex environment where resilient U.S. consumer spending and a stable labor market offset pressures from sticky inflation and geopolitical tensions.

- While global equities and bonds faced headwinds, investors found success by rotating into "out-of-favor" areas like Value and Small-Caps, which provided a critical buffer against the 12% drop in the "Magnificent 7."

- The U.S. economy continues to grow, though at a more fragmented pace, with high-migration regions in the Sun Belt and new industrial hubs significantly outperforming more stagnant coastal markets.

- Outside the U.S., economic conditions remain mixed; however certain countries are benefiting from appreciating commodity prices.

- A major highlight of the market's fundamental strength is that most of the 2025 equity returns were driven by robust earnings growth rather than just speculative hype.

- Corporate profitability remains a strong foundation, with 76% of S&P 500 companies beating expectations in the fourth quarter of 2025 and delivering the fifth consecutive quarter of double-digit earnings gains.

- Although valuations are facing increased scrutiny, forward-looking earnings and revenue forecasts for 2026 have recently been revised upward, which augurs well for future equity performance.

- The quarter reinforced the "fallacy of point-in-time returns," proving that a disciplined, diversified approach is the most reliable way to navigate shifting market tides.

- Historical shifts in S&P 500 leadership (such as AIG and Citigroup) remind us that diversification allows investors to capture the rising stars of "creative destruction" while avoiding over-exposure to yesterday's winners.

02/19/2026

Self‑Employed? The Right Financial Advisor Can Save You Thousands (Wall Street Journal)

self‑employed ? The Right Financial Advisor Can Save You Thousands. Self‑employed people juggle cash flow, taxes and retirement. A financial advisor can help you save money and keep your business and personal finances aligned

02/14/2026

What Elite Tax Pros Wish Their Wealthy Clients Knew. (Bloomberg)

02/03/2026

Tax Day 2026 is approaching. Are you ready for the OBBBA changes?

Increased SALT caps to restored 100% bonus depreciation things have shifted high for earners.

Read filing guide & checklist: https://www.sarsillc.com/prepare-for-the-2026-tax-season-filing/

Prepare for the 2026 Tax Season Filing with this guide from Deva Panambur, CFA®, CFP®. Learn how the OBBBA impacts SALT caps, depreciation, and IRAs.

01/06/2026

http://www.sarsillc.com/wp-content/uploads/2026/01/4Q-2025-Newsletter.pdf

EXECUTIVE SUMMARY

- US stocks performed well in 2025, helped by large technology companies, though performance broadened modestly toward the end of the year.

- Foreign stocks outperformed US stocks significantly, helped by a declining dollar, corporate reforms and improved profitability in Japan as well as fiscal stimulus in Europe.

- Fixed income delivered a solid recovery after several challenging years, helped both by higher coupon income and declining interest rates as monetary policy gradually eased.

- The U.S. economy continued to expand in 2025, though at a slower pace than in prior years.

- The Federal Reserve cut its benchmark federal funds rate during the second half of the year.

- Political developments played a visible role in shaping market sentiment during 2025.

- Corporate earnings continued to be strong as companies navigated the uncertain and unstable environment.

- US stocks are more expensive than foreign stocks in absolute and relative terms.

- There are elements of investor behavior and market pricing currently that rhyme with previous bubbles but there are key differences that seem to suggest we are not yet in a bubble.

- Investors should continue to focus on diversification to create resilient portfolios.