Legacy Insights- February 2026
The Market Lens
Our new year environment is defined by moderating inflation, elevated interest rates, and shifting expectations around economic growth. Recent commentary from economists reflects this period of transition. David Kelly, Chief Global Strategist at J.P. Morgan, has noted that while inflation has eased meaningfully from prior highs, the Federal Reserve remains cautious. Monetary policy continues to be restrictive, and policymakers have emphasized that any future adjustments will depend on sustained progress toward price stability and broader economic conditions. Kelly highlights that the economy appears to be slowing in an orderly way rather than showing signs of acute stress.
Brian Wesbury, Chief Economist at First Trust, continues to point to areas of resilience within the U.S. economy, including consumer spending, productivity trends, and business investment. At the same time, he acknowledges that tighter financial conditions and higher borrowing costs can contribute to market volatility as investors reassess valuations and growth assumptions.
Together, these perspectives underscore a market environment that is neither overheated nor contracting sharply but rather adjusting to more normalized conditions following an extended period of rapid change.
Beyond the Balance Sheet
Recent economic data continues to present a mixed—but generally stable—picture:
Inflation readings have remained lower than recent peaks, though progress has been uneven across sectors.
Interest rates remain elevated, reflecting the Federal Reserve’s ongoing focus on inflation management.
Economic growth has moderated, with expansion continuing at a slower pace.
Labor market conditions have softened, with slower hiring and wage growth compared to prior years.
While headlines may shift quickly, these conditions reinforce the importance of maintaining perspective. Market cycles are normal, and periods of adjustment often create both challenges and opportunities over time.
Inside Legacy
January was a busy month! Wendy with kids’ activities, such as Basketball, Spelling Bees and Talent Shows. Nick welcomed back NCAA skiing to Reno for the first time in 15 years. Races were held on Slide Side of Mt. Rose and the welcome party was hosted by Nick and the Nevada Ski Team Boosters at Schussboom Brewing Co. Phil continued his travels with a trip to Healdsburg with his EO business group and later to see friends in Colusa – lots of driving and good times with friends.
We are grateful for the trust you place in us and look forward to another year of partnership. Thank you for allowing us to be part of your journey.
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.