Legacy Insights — January 2026
The Market Lens
As we begin the new year, investors are navigating an environment shaped by moderating inflation, evolving Federal Reserve policy, and a steadily expanding—but more measured—U.S. economy.
Recent commentary from leading economists highlights this transition. David Kelly, Chief Global Strategist at J.P. Morgan, has emphasized that monetary policy remains restrictive and that inflation has moderated from prior peaks. He notes that the Federal Reserve is now focused on balancing inflation control with economic stability, closely monitoring incoming data as it assesses future policy decisions. While the Fed has signaled a willingness to adjust policy when appropriate, officials have consistently reiterated that decisions will remain data dependent.
Brian Wesbury, Chief Economist at First Trust, has pointed to continued economic resilience, supported by consumer spending, productivity improvements, and ongoing business investment. At the same time, he acknowledges that tighter financial conditions can lead to periods of volatility as markets adjust to shifting expectations around growth and interest rates.
Taken together, these perspectives reflect an economy that is slowing from prior highs yet continuing to function with underlying strength. For investors, this reinforces the importance of maintaining a long-term, diversified approach rather than reacting to short-term market movements.
Beyond the Balance Sheet
Recent economic data suggests a period of normalization rather than extremes:
· Inflation has moderated, particularly compared to recent years, though it remains above long-term historical averages.
· Interest rates remain elevated, reflecting the Federal Reserve’s continued focus on inflation control.
· Economic growth has slowed but remains positive.
· The labor market has cooled, with hiring and wage growth moderating from earlier levels.
Periods like this often bring mixed signals and changing narratives. Rather than attempting to predict outcomes, we believe investors are best served by focusing on goals, risk tolerance, and time horizon—while recognizing that market cycles are a normal part of investing.
Inside Legacy
In December we all keep busy with the holiday spirit with our families. Nick managed a few low tide ski days with his two boys and will celebrate the new year in Florida with the in-laws. Wendy and her family participated in homeless feeds and lots of Christmas experiences, closing out 2025 with fun! Phil and Susan visited their family in Placerville, especially enjoying their grandchildren Isla, Arian and Calean.
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
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All information is believed to be from reliable sources; however, LPL makes no representation as to its completeness or accuracy. This research material has been prepared by LPL Financial LLC.