As we turn the page to a new year, I want to take this opportunity to thank you for your continued trust and partnership. Your commitment inspires us to deliver the highest standard of investment management, and we look forward to helping you achieve your financial goals in 2026.

This past year was marked by resilience and opportunity. The S&P 500 and many global indexes reached all-time highs, buoyed by robust economic performance, underscoring the strength and adaptability of global markets. The market’s momentum was powered by rapid advances in artificial intelligence (AI), which is transforming business models, enhancing productivity, and opening new avenues for growth across sectors.

While concerns about bubbles and systemic risks emerged, our research shows that key risk indicators remain subdued. Corporate balance sheets—especially among leading technology firms—are healthy, leverage is contained, and credit markets remain stable. These fundamentals provide a strong foundation for continued growth in 2026 and beyond.

2026 Outlook: Opportunities & Risk

Looking ahead, we anticipate another dynamic year for investors. Our base case sees the S&P 500 reaching 7,750 by year-end 2026, supported by:

• More AI Adoption: The integration of AI into business operations, product development, and customer engagement is accelerating. Companies that leverage AI are likely to see enhanced efficiency and competitive advantage.
• Continued Stimulus: Fiscal and monetary support remains robust, underpinning consumer confidence and corporate investment.
• Earnings Growth: Corporate earnings are projected to rise, particularly in sectors benefiting from digital transformation and innovation.
• Increased Volatility: With rapid change comes market volatility. We expect fluctuations, but view them as opportunities for disciplined, long-term investors.

Systemic Risk Monitoring

We are vigilant in monitoring for early signs of systemic risk, such as:

• Increases in net corporate debt relative to market capitalization
• Deteriorating free cash flow and interest coverage ratios
• Widening credit spreads in investment-grade and high-yield markets

Currently, none of these indicators signal elevated risk, but we remain proactive in our risk management approach.

Current Market Review

Based on the markets, investors might be focused on sectors with strong exposure to AI and digital innovation:

Diversification remains key, and investors are reminded of the benefits of regularly reviewing portfolio allocations to ensure alignment with their objectives and market conditions.

Our Commitment to You

Your financial goals are our top priority, our mission is to help you navigate changing markets with confidence. If you haven’t already benefited from a personalized financial plan, or you are seeking guidance on retirement planning, estate considerations, or tax-efficient investment strategies, our team of experienced wealth planning professionals is here to provide tailored advice and actionable solutions that fit your unique circumstances. Please reach out to one of our team to fully explore our full range of services we offer.

If you have questions about your portfolio or wish to discuss adjustments in light of current market trends, please contact us at your convenience. We are here to support you every step of the way.

Closing Thoughts

As we begin 2026, we are optimistic about the opportunities ahead and remain committed to protecting and growing your wealth. Thank you for allowing us to be your trusted advisors. We wish you and your loved ones a happy, healthy, and prosperous New Year.

Warmest Wishes,

THE SOLOMON WEALTH MANAGEMENT GROUP