1. Markets: Energy’s Yin–Yang, Market Breadth, and Staying Grounded

What we’re seeing:
Two trends are showing up in investor conversations as 2026 gets underway.

First: market leadership is still concentrated, but there are more signs of broadening participation beneath the surface. Bloomberg highlighted a recent month where the S&P 500 Equal Weight index gained 1.7% while the standard (cap-weighted) S&P 500 rose only 0.3%—a classic “breadth” tell. In the same report, the largest 50 names fell 0.6% while the remaining 450 rose 1.3% (BofA data cited by Bloomberg). (Bloomberg)

Second: energy is back on the front page, partly because geopolitical uncertainty keeps reminding markets where supply constraints can show up. Reuters reported today that Phillips 66 said two Gulf Coast refineries can run up to 100,000 bpd of Venezuelan crude—one practical example of how supply linkages ripple into refining and product markets. (Reuters)

Why we’re pausing (not reacting):
Headline-driven trading is seductive, but it’s usually expensive. Markets often reprice geopolitical shocks quickly—faster than most investors can reposition without adding friction. We’d rather treat news as context, not a call to abandon process. The pause is intentional: it keeps portfolios anchored to cash flows, balance sheets, and valuation discipline rather than mood or frothy sound bytes.

How we’re positioning:
We view energy through a yin–yang lens: traditional integrators on one side and transition technologies on the other. Traditional players like CVX and XOM can provide scale, capital discipline, and shareholder-return frameworks; clean/alternative exposures can provide long-run optionality as the grid evolves. In that spirit, we added Chevron, CVX on 11/4 (+1.64% since), and our Alphavest Equity Income Portfolio (+21.47% 2025 vs. DJIA +14.70%) holding XOM is up over 8% since 11/4 (vs. S&P 500 +1.28% over the same period).

On the transition side, we continue to watch how renewables and “always-on” clean power mature. Bloomberg reported that geothermal developer Fervo Energy raised $462 million (with new and existing investors, including Google). That’s meaningful not because it’s trendy, but because it signals growing capital formation around firm, 24/7 clean power—a need that’s rising with data centers and electrification. (Bloomberg). On the alternative energy side, Equity Income Portfolio Holding, NextEra Energy, NEE yielding 2.79% is a clean energy company, and through its subsidiaries, generates, transmits, distributes, and sells electric energy utilizing natural gas, wind and nuclear resources.

2. Financial Planning: Precision Over Perpetual Change

What we’re seeing:
Investors and planners are shifting from reactive noise chasing to precision planning — thoughtful analysis of imminent structural changes that can materially impact 2026 outcomes. One of the dominant themes in planning conversations right now is understanding how recent tax law changes — particularly the One Big Beautiful Bill Act (OBBBA) — will affect individual tax liabilities, retirement strategies, liquidity needs, and estate intentions.

Under OBBBA, the federal tax landscape for 2026 includes several notable shifts:

• Significantly higher SALT deduction limits — the cap on state and local tax deductions has expanded from $10,000 to roughly $40,000 (with phase-outs for high earners), potentially increasing itemization opportunities for many taxpayers.
• A new 65+ bonus deduction — taxpayers aged 65 and older can claim up to an additional $6,000 deduction (or $12,000 for couples) on top of the existing standard deduction, providing meaningful relief for older households.
• Expanded or new tax-preferred savings vehicles (e.g., “Trump accounts” that allow tax-favored savings for children, and other below-the-line deductions for qualified overtime, tips, or certain vehicle interest).
• Higher indexed tax brackets and standard deduction — the IRS adjusted brackets upward again for inflation, and for tax year 2026 the standard deduction is set at approximately $32,200 for married couples filing jointly and $16,100 for single filers, boosting take-home pay for many.

These changes are feeding an uptick in planning questions around cash flow timing, Roth vs. traditional contribution decisions, itemizing vs. standard deduction strategies, and estate-tax planning.

Why we’re pausing (not reacting):
New tax laws and bracket adjustments can trigger knee-jerk responses, especially around retirement contributions and deductions. But reacting to every headline without context can be harmful; for example, aggressive Roth conversions in a year with expanded standard deductions and larger SALT allowances might actually reduce other deductible benefits or worsen Medicare IRMAA surcharges. Good planning is client specific/scenario-based, not shock-based.

Instead of reacting to drafts or sound bytes, we recommend a careful, scenario-based review of your tax profile — including projected taxable income, filing status, anticipated deductions, and retirement timing — before pulling strategic levers.

How we’re positioning:
Positioning for 2026 means aligning current tax changes with your longer-term goals, not just reacting to each new line item. That includes:

• Comprehensive tax planning reviews that examine how SALT cap changes and higher standard deductions interact with itemizing thresholds
• Retirement contributions strategy that accounts for recent catch-up rule changes (including Roth catch-up requirements for older, high-income participants) and evolving deduction options
• Income sequencing and distribution modeling to anticipate where and when income will be recognized
• Estate and legacy planning updates focused on evolving exemption levels and lifetime gifts/listening goals

3. Lifestyle & Behavior: No Resolutions, Just Direction

What we’re seeing:
January is when everyone becomes a different person… for about, on average…. ten days. The cultural script says: set bold resolutions, reinvent yourself, and sprint into the year. Yet the data (and lived experience) suggests resolutions are hard to sustain.

At the same time, we’re seeing something healthier among many investors: less interest in “big declarations,” and more interest in alignment—how they want to spend time, where they want flexibility, what “enough” means, and how money can support a life that feels intentional rather than performative. Further, investors are deciding to align their portfolios more with their values, and, the time is now for that philosophy to align not only with ones ethics and values, but with alpha, or outperformance from traditional markets.

Why we’re pausing (not reacting):
We’re pausing because January urgency can push people into choices that don’t match who they actually are in March or October. That’s true in portfolios and in life. And here’s the kitschy—but surprisingly useful—reframe: in many traditions, the year hasn’t truly “begun” yet. The Lunar/Chinese New Year in 2026 falls on February 17, associated with the Year of the Fire Horse in popular astrology coverage.

Fire Horse symbolism is fast, dynamic, opportunity-rich—great energy, but also prone to impulsiveness if you don’t know where you’re going. So rather than rushing into rigid resolutions now, we treat January as a runway month: observe what’s working, clarify priorities, and design small changes that can survive real life.

How we’re positioning:
Positioning in lifestyle terms means building systems instead of slogans. If the Fire Horse year is about momentum, the question becomes: momentum toward what? We encourage clients to anchor decisions in a few practical prompts:

• “What would make this year feel successful even if markets are messy?”
• “Where do I want more optionality—time, work, location, health?”
• “Which ‘values’ are non-negotiable, and do my spending and investing reflect them?”

This is also where values-based investing naturally fits. For clients who want it, we can build portfolios that explicitly reflect core values (e.g., no fossil fuels, no big pharma, other exclusions). The point isn’t virtue signaling—it’s reducing internal friction so your plan feels coherent. No resolutions required. Just direction.

Want to experience the Perfect Day planning process—or need a refresher on your prior Perfect Day efforts? It’s one of the most rewarding activities we do for clients.

Want to experience the Perfect Day planning process—or need a refresher on your prior Perfect Day efforts? It’s one of the most rewarding activities we do for clients.  Book a session TODAY.…and, you can considered your resolutions DONE. Happy New Year!