Legacy Insights- August 2026

The Market Lens

‍Markets have continued to climb a wall of worry through the summer, with corporate earnings holding up even as investors digest a more complicated inflation picture. Technology has carried much of this bull market, with strong cloud growth from Microsoft, and while we're watching for broader participation across sectors, leadership has yet to meaningfully rotate away from the largest names.

‍The Fed's July meeting delivered its fifth consecutive rate hold, keeping the federal funds rate at 3.50%–3.75%, on a 9–3 vote. What mattered more was the market's reaction to it. Long-term Treasury yields moved meaningfully higher after the decision while short-term rates fell, steepening the yield curve and raising a pointed question: did the Fed just make a policy error by not raising rates? New Chair Kevin Warsh has been deliberately sparse with forward guidance as part of an effort to rebuild the Fed's credibility after several years of missed inflation targets. But markets went into this meeting pricing a one-in-three chance of a hike, which is unusually high this close to a decision and came out less convinced, not more, that the Fed has inflation under control. Unless economic data softens meaningfully before September, markets may effectively force the Fed's hand at the next meeting simply to re-anchor long-term rates and restore confidence.

Beyond the Balance Sheet‍ ‍

Given this backdrop, we continue to favor a disciplined approach, not overreacting to any single Fed meeting. While LPL Research's fixed income models remain neutral duration relative to benchmarks, we at Legacy Wealth Planning have maintained a shorter-duration posture within our own portfolios. With long-term rates already elevated and the Fed's reaction function still unclear heading into September, we see limited reward for taking on additional interest rate risk further out on the curve at this point in the cycle.

On the equity side, we remain selective around the current wave of IPO activity. Newly public companies tend to see outsized volatility in early trading, and we'd rather let our actively managed strategies do the work of evaluating these opportunities once valuations settle down, rather than chasing early enthusiasm. If you would like to learn more about our managed portfolios, please schedule a meeting with your financial advisor to discuss the right strategy for you.

Periods like this — where the Fed's own credibility is being tested by the market — are a reminder that uncertainty is a normal feature of investing, not a signal to abandon a long-term plan. If recent headlines have you rethinking your portfolio, we encourage you to give us a call or schedule a review. We're always happy to revisit your objectives, reassess your risk tolerance, and confirm your portfolio still reflects your goals.

Inside Legacy‍ ‍‍ ‍

This August, some our team heads to San Diego for LPL Focus, LPL Financials’ four-day flagship conference. Thousands of advisors, industry partners, and thought leaders come together across dozens of sessions covering technology, investment trends, and the future of the industry. Focus is one of Legacy Wealth Planning’s best chances to bring fresh thinking back to how we work with you.‍

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 1153255