Happy Spring! April didn’t just perform well; it was the best we’ve seen in years. Even with plenty of geo-political noise, the market managed to look past the commotion and focus instead on resilient economic fundamentals and strong corporate earnings.
The S&P 500 and Nasdaq jumped 10% and 15% respectively, and even the Dow participated in the upswing, with industrials participating in the AI revolution by acting as the foundational infrastructure providers. A massive 84% of companies reported earnings that beat expectations. These advances were strengthened once the market found its footing early in the month as talk of a ceasefire in the Middle east helped settle nerves and stabilize energy prices.
The momentum from April feels real, but your Purus Investment Committee is keeping a close eye on a few things. With Kevin Warsh stepping in as the new Fed Chair in mid-May, we could see some short-term volatility as the market gets a feel for his style. On a positive note, growth is spreading; it is not just the “Magnificent Seven” tech giants anymore. We are seeing strength across financials and industrials which usually means the market has a more solid foundation.
While earnings look great for the rest of 2026, valuations are getting a bit high. Our focus remains on staying diversified - taking advantage of growth while keeping an eye on the variables that may cause some bumps along the way.
As always, if there is anything you would like to discuss, please reach out. We would love to hear from you!
"Stock performance is shaping up to be eerily similar to 2025: each year began with AI anxieties - this year it was AI labor displacement; last year it was DeepSeek. This AI handwringing gave way to seismic political change - from tariffs in 2025 to the Iran war in 2026.
Both events had the potential to impair earnings and economic growth, spur inflation and alter the path of monetary policy. Yet the fallout has been limited, with political pivots giving way to double-digit rebounds. One month since the market low, the S&P 500 is up 13%. Last year, one month after reciprocal tariffs were postponed, markets had also jumped 13% off the lows."
"When I served as a United States diplomat, we often said that war is the failure of diplomacy. The inconclusiveness of last week's initial negotiations in Islamabad underscores just how fragile diplomacy can be.
Like all wars, however, this war too shall end, and it is clear it will be via a negotiated peace agreement rather than an unconditional surrender. The rocky road to peace only just began in Islamabad, and it was too much to expect full resolution from a single round of talks."
"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. The Index adopts a market-cap weighting approach, allocating a higher percentage of the Index to companies with larger market capitalizations, adjusting for the number of shares available to trade publicly. In the first quarter, the Index delivered a total return of -4.3%, matching the worst quarterly return since the first quarter of 2025."
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Thank you for your unconditional love, endless support, and countless sacrifices. Your strength, kindness, and guidance make
the world a better place, and today we celebrate you with heartfelt appreciation and gratitude.
Love you always, Your Purus Family