Articles & Market Commentary

The third quarter of 2026 presented investors with a complex set of conditions. Interest rates climbed to 20-year highs, yet strong corporate earnings continued to underpin equity markets. Oil prices surged back above $100 per barrel, the Federal Reserve raised rates for the first time in three years, and attention is turning to November’s midterm elections as concerns around AI continue to evolve.

Despite this backdrop, major U.S. stock indices ended the quarter near all-time highs, and gains were not confined to a single market segment. The energy sector, international equities, and commodities all contributed to portfolio performance. While rising rates have weighed on bonds, yields now sit at their most attractive levels in recent memory. Maintaining portfolio balance remains the cornerstone of navigating these shifting conditions as the fourth quarter begins.

Nelson Mandela famously said that "education is the most powerful weapon which you can use to change the world." For many families, funding a child's education is a central financial planning priority, yet the associated costs have risen sharply over time. Grandparents often wish to contribute to their grandchildren's education as a way of creating a legacy that extends well beyond traditional gifts.

Historically, grandparents had to navigate complex rules around gifting to avoid unintended consequences related to taxes and financial aid eligibility. Recent federal financial aid reforms, however, now exclude grandparent-owned 529 accounts from the student assets portion of the aid calculation. This important change eliminates a longstanding drawback, making these accounts worth a fresh look as part of a family's education funding strategy.

The Nobel Prize-winning economist Paul Romer once wrote that “economic growth springs from better recipes, not just from more cooking.”¹ This foundational idea holds that raising living standards is not simply about adding more workers or equipment, but about enabling each worker to produce more, and higher quality, goods and services.

This concept is often captured by “productivity,” which is central to the kind of economic growth that lifts wages and quality of life. It is also one of the most pressing questions today, as adoption of artificial intelligence continues to accelerate. AI and Federal Reserve policy may appear unrelated, but they are linked through their effects on financial markets, interest rates, productivity, and long-run economic growth. Fed Chair Kevin Warsh recently addressed these themes at the Fed's annual symposium in Jackson Hole, Wyoming.² Given the significant market impact of AI in recent years and ongoing uncertainty around Fed policy, there is much for investors to consider from a long-term perspective.