Q1 2026 Investment Update (April)
📊 Q1 2026 Investment Update
The stock market faced volatility in March and April due to the geopolitical conflict with Iran and skyrocketing oil prices. After a ceasefire, markets quickly rebounded to record highs. Investors appear to be again focusing on a longer-term view of corporate earnings and AI growth, while oil prices have less influence than during past crises like the 1973 embargo or the 1980s Iran-Iraq war (the last time the strait of Hormuz was essentially closed).
🔄 Portfolio Changes
On March 26th, as the market experienced a downturn amid the conflict with Iran, we took proactive steps to manage risk within the portfolio.
These actions were guided by our investment process and responding to increased market volatility. Our goal was safeguarding the strong gains accumulated over the past several years and maintaining a prudent approach during uncertain market conditions.
- Domestic Equities: we reduced our stock exposure, while still remaining fully invested within the established allocation ranges.
- High Yield Bonds: we eliminated our positions in riskier high yield bonds.
- International Equities: Our international stock exposure continues to be a bright spot, outperforming domestic stock markets. We maintained this holding through the volatility during March and April.
📈 What’s next?
We are getting more constructive on stocks and may add some exposure during our next rebalance. However, uncertainty remains and we believe our prudent approach is warranted. We continue to monitor tariff policy, interest rates, and geo-political happenings.
If your financial situation has changed or you’d like to review your investments, please reach out to us for a review.
The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Lincoln Investment. These views are as of October 22, 2025 and are subject to change based on subsequent developments. The material presented is provided for informational purposes only. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Nothing contained herein should be construed as a recommendation to buy or sell any securities. As with all investments, past performance is no guarantee of future results. No person or system can predict the market. All investments are subject to risk, including the risk of principal loss.