Legacy Insights- June 2026
The Market Lens
Since October 2022, the market has been on an incredible run. The S&P 500 has gained approximately 119%, or 24.4% annualized, with the "Magnificent Seven" stocks significantly outperforming the broader market. Despite a nearly 9% pullback in March, which remains well below the market's historical average annual drawdown of roughly 17%, corporate earnings expectations continue to improve. Analysts have revised 2026 earnings estimates higher by approximately 15% since early 2025. Earnings growth has been strongest among the largest U.S. companies, with the top 50 firms expected to grow earnings by nearly 16% year-over-year, compared to 8.6% for the broader S&P 500. While market concentration remains elevated, strong earnings growth and continued investment in artificial intelligence and semiconductor infrastructure remain important drivers of the current bull market.
Today’s hyperscalers are generating approximately $2T in annual revenue at operating margins near 40%, with trailing 12-month EBITDA approaching $800B. Microsoft, Amazon, Google, Meta, and Nvidia continue to invest in the future of AI infrastructure, collectively spending hundreds of billions annually in CapEx. AI appears even more transformative today than it did just 90 days ago.
Beyond the Balance Sheet
Consensus is that inflation will likely settle closer to 3%, above the Federal Reserve’s long-term 2% target. Core PCE inflation has remained persistent, and if the Strait of Hormuz does not reopen soon, the Fed will not lower rates this year. In that case, economic growth could slow as we move later into the business cycle, increasing the potential risk of recession. That said, history has consistently shown the importance of remaining invested through market cycles. Investment allocations should be adjusted based on changes in financial goals, time horizon, or cash flow needs — not short-term market headlines. The “holy grail” of investing is taking part in as much upside as possible while minimizing the full impact of downside volatility.
Inside Legacy
At the end of May, the Legacy Wealth Planning team had the opportunity to attend the 2026 Official Community Choice Best of Reno Awards Ceremony. While we did not bring home first place this year, we are incredibly grateful to have been nominated and supported by such a loyal and amazing community. Thank you to everyone who took the time to vote for us—your trust, support, and confidence in our team mean more than you know.
Phil, Nick, and Wendy | Legacy Wealth Planning | 775-850-2500 | www.lwpreno.com
These views are those of the author, not of the broker-dealer or its affiliates. This material contains an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. All investments involve risk, including loss of principal. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Tracking 1117920