Your Mid-Year Market Update 

By Brett Gottlieb

At the start of the year, you likely mapped out a clear financial strategy. But with a roaring start for AI stocks, sudden geopolitical shifts, and stubborn inflation numbers, the investing landscape looks vastly different today.  

Does your portfolio still align with your original goals?  

By early June, the S&P 500 had risen roughly 9% for the year and pushed to new highs, supported by strong corporate earnings and continued spending on artificial intelligence.  

Then came a rougher stretch. Tensions in the Middle East caused oil prices to swing unpredictably, while high-flying technology stocks experienced a sharp pullback. Though a subsequent ceasefire helped calm broader market anxieties, the volatility reminded investors that the path upward is rarely linear.  

Inflation hasn’t cooperated either. The Consumer Price Index rose 4.2% year-over-year in May, the highest reading in roughly three years, driven largely by a jump in energy prices. Core inflation, which strips out food and energy, came in at 2.9%. Shelter costs are still climbing too, even as rent growth slows. 

Against that backdrop, the Federal Reserve Board maintained a cautious stance, as  the FOMC held its target interest rate at 3.50% to 3.75% through its June meeting. New Fed Chair Kevin Warsh used his first press conference to stress the Fed’s focus on price stability, and many investors are now weighing the chance of a rate hike later this year rather than the cuts many had expected back in January. Mortgage rates have followed a similar path, climbing back above 6.5% in June after dipping closer to 6% earlier in the year. 

The labor market looks steadier by comparison. Employers added 172,000 jobs in May, well above expectations, and the unemployment rate held at 4.3%. 

For upper-middle and high-income families, such as those we serve in Carlsbad and across San Diego County, all of this adds up to a market that has rewarded patience this year but hasn’t made it easy. A mid-year look at your finances can help you separate the headlines from what applies to your own plan. 

Don’t Let Rising Costs Outpace Your Cash Flow 

Higher prices for energy, groceries, and everyday services can stretch a household budget that felt manageable back in January. For families whose income has grown through raises, bonuses, or business profits, spending tends to grow right along with it. 

A quick look at fixed expenses, discretionary spending, and emergency fund balances can show whether that extra income is going toward your priorities or simply being absorbed by rising costs. It’s also worth confirming that automated retirement and savings contributions reflect any raises you’ve received this year, rather than percentages set months or years ago. 

What a Choppier Market Means for Your Portfolio 

A handful of large technology companies have driven much of this year’s gains, and that concentration cuts both ways. When those stocks rally, portfolios tied closely to major indexes benefit. When several of them stumbled during June’s pullback, the same portfolios felt it more than some investors expected. 

We recommend checking this even if you’ve never bought an individual stock. Retirement accounts, employer stock plans, and target-date funds can all carry more exposure to a small group of companies than people realize. 

Here’s a hypothetical example: a technology executive in North County San Diego who has received company stock for years might find that years of appreciation in that one position now make up a larger share of their portfolio than originally intended. A mid-year review is a natural time to look at whether that concentration still fits their risk tolerance, and whether rebalancing or tax-efficient diversification strategies should be considered given today’s valuations. 

Higher rates also continue to affect bond yields, cash alternatives, and how much of a portfolio belongs in fixed income. Reviewing your asset allocation now, rather than waiting until year-end, gives you more room to make adjustments without feeling rushed. 

Take Advantage of Retirement and Tax Planning Strategies 

There are a few changes for 2026 that should be factored into the second half of your planning year. 

The IRS raised the 401(k) employee contribution limit to $24,500 for 2026, and the IRA limit increased to $7,500. Workers aged 50 and older can contribute an additional $8,000 to a 401(k), or $11,250 if they’re between 60 and 63. One detail to keep an eye on: starting this year, employees who earned more than $150,000 in FICA wages the prior year must make any catch-up contributions to a workplace plan on a Roth basis rather than pre-tax. 

On the estate planning side, the federal gift and estate tax exemption rose to $15 million per individual for 2026, or $30 million for a married couple, after recent legislation removed a scheduled reduction many families had been planning around. The annual gift tax exclusion stayed at $19,000 per recipient.  

Families who adjusted their estate strategies in anticipation of a lower exemption may want to revisit those plans now that the higher amount is permanent. 

A few other items to review before year-end: 

• Roth conversion opportunities 

• Capital gains exposure after this year’s market gains 

• Withholding adjustments if your income has changed 

• Charitable giving strategies 

Keep Your Plan Moving Forward 

None of this means trying to predict where markets or interest rates head next. Even professional forecasters have had a rough stretch this year, and conditions can shift quickly, as this spring’s events showed. What a mid-year check can do is help you see whether your portfolio, contributions, and tax strategy still line up with the goals you set for 2026, and where adjustments before year-end might help. 

If you’d like to talk through how recent market and economic developments could affect your situation, the team at Comprehensive Advisor is here to help. Reach out by emailing us at info@ComprehensiveAdvisor.com or calling (760) 813-2125. 

About Our Advisors 

With nearly two decades of industry experience, Brett Gottlieb, and the team at Comprehensive Advisor provide personalized retirement planning and investment services. They help clients sift through the sea of investment options and make sense of what strategies are best suited for your unique needs. Our advisors customize financial strategies centered around “The Retirement Defense” process, a unique way we build your written plan that is designed to help get you to and through retirement by focusing on the key areas of your financial life. Our investment philosophy serves as a road map for helping you navigate the complexities of the financial landscape. By prioritizing capital preservation, emotional resilience, and personalized strategies, we help empower you to confidently pursue your financial goals and adapt to life’s changes. 

Insurance products are offered through the insurance business C.A. Financial & Insurance Services. Comprehensive Advisor, LLC is an Investment Advisory practice that offers products and services through AE Wealth Management LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by are not subject to investment Advisor requirements. CA Ins. Lic. #6000262  4193102-6/26 

Investing involves risk, including the potential loss of principal. 

Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. C.A. Financial & Insurance Services is not affiliated with the U.S. government or any governmental agency.  

This article is meant to be general and is not investment or financial advice or a recommendation of any kind.