Q1 2026 Investor Update

Market Performance

As of May 22, 2026

Greater Wealth’s Market Outlook

The global equity bull market has continued in 2026. Today, the market is increasingly dominated by the “Artificial Intelligence” theme. To put this into context, AI stocks accounted for half of the S&P 500’s total return in 2025 (source) and currently account for roughly half of the US stock index (source).

The AI investment boom has lifted the entire US economy, not just the tech sector. For example, demand for electricity has lifted utilities stocks, data center build outs have lifted construction stocks, and natural resource companies have seen demand for critical materials such as copper and silver rise to support electric components.

While the US industrial economy is booming, the US consumer appears to be weakening. High gas prices, elevated interest rates, and persistent inflation have pressured lower-income households. Our updated view is that interest rates will remain elevated, and we expect further weakening in the consumer sector as we approach the later innings of the current economic cycle.

Greater Wealth’s Portfolio Positioning

Please note that the portfolio (left) represents our “standard portfolio”, which may differ from individual portfolios based on client-specific risk constraints and other factors.

We made a few changes this quarter. We replaced our long-duration bonds in the fixed income bucket with T-Bills and physical gold to hedge inflation and geopolitical risks.

Our medium risk bucket hasn’t changed in recent quarters. Utilities stocks continue to benefit from electricity demand growth from AI. Our long/short fund manager has delivered strong outperformance.

In our elevated risk bucket, we added some direct semiconductor exposure to get more upside from the AI investment boom. Our emerging market stock fund owns several semiconductor and memory stocks in Korea and Taiwan, which have driven strong results. Our Japan exposure has also performed well.