There is certainly something to be said for the phrase “the dog days of summer”—the heat is on. We hope everyone is staying cool, hydrated, and enjoying these final weeks of the season.

Throughout much of the summer, the economy and financial markets have been influenced by several persistent themes: the ongoing conflict between the U.S. and Iran, stubborn inflation, and volatility in crude oil prices. These issues are likely to remain important considerations as we move through August.

‍Resilience is rewarded.

Resilience is admirable, but it is not a strategy—and it is not the same as certainty. In investing, business, and life, progress rarely comes from getting everything exactly right. More often, it comes from staying steady, thinking rationally, and continuing to move forward. That is the value of maintaining a long-term perspective. Meaningful progress does not require perfect timing, perfect conditions, or a perfect track record.

We are living through a period that continues to demand resilience. Markets, economies, businesses, families, and even broader societies are being asked to absorb shocks and keep moving forward. The pressure is being felt on many fronts, which makes persistence all the more important.

Consider a couple of examples:

Frank Sinatra recorded more than 1,200 songs and had 209 hits—a success rate of roughly 17%.

Babe Ruth had 8,399 at-bats and hit 714 home runs—a home-run rate of about 8.5%. He also struck out 1,330 times and held the major league career strikeout record from 1928 until Mickey Mantle surpassed it in 1964.

Pablo Picasso created an estimated 150,000 works of art, with approximately 1,170 considered major or widely recognized works—a success rate of less than 1%.

We tend to remember the hit, the homerun, and the masterpiece. What we often forget is the volume of effort behind each one—the misses, errors, strikeouts, and the work that may not have been applauded at the time. In that same spirit, our investment committee will continue looking for the base hits, doubles, and occasional home runs, while working hard to avoid strikeouts and errors.

As always, please feel free to reach out to the Purus team with any questions or concerns. We hope you enjoy the rest of the summer.

"U.S. earnings just keep getting stronger. After reaching 27% last quarter, S&P 500 2Q26 EPS growth is on track to hit 38% y/y, bringing the estimate for the full year up to 28%. This would mark the strongest year since COVID and the third year of double-digit earnings growth for the first time since the 2000s. Profit margins too are at a record high."

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"With the first half (1H) of 2026 coming to close last week, this week's edition of 'Three on Thursday' looks at the S&P 500 Index (the 'Index') over that period. Widely regarded as a barometer for the overall stock market, the index tracks the performance of 500 of the largest companies listed on U.S. stock exchanges."

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"We are living through an extraordinary market environment. The level of concentration in many equity benchmarks has increased significantly. The evidence is striking. The 10 largest companies in the S&P 500 represent nearly 40% of the index, a level not seen since the mid-1960s."  

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"There is growing angst among investors today. Market drawdowns and bouts of volatility are a normal part of investing, but they inevitably raise the same question: Has something meaningful changed? The recent weakness in the technology sector, particularly among chipmakers and memory companies, has amplified concerns."

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