April 2026
In this episode, Chief Executive Officer Jeff Sarti and Chief Investment Officer Meghan Pinchuk break down Q1, exploring consumer sentiment, why traditional diversification didn’t behave as expected, and how different asset classes responded during this period of uncertainty. The conversation highlights a key theme: resilience doesn’t come from predicting markets. It comes from preparing for multiple outcomes.
Tune in if you’re interested in…
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Questions This Episode Answers
What This Means for Your Financial Plan
One of the biggest lessons from Q1 is that markets don’t always behave the way we expect, and trying to react in real time can do more harm than good. Instead, building a portfolio designed to handle multiple scenarios is key to long-term success.
This is where true diversification matters. Incorporating a mix of traditional and alternative assets can help create a more resilient portfolio that isn’t overly dependent on any single outcome.
If you’re wondering whether your current portfolio is positioned to handle today’s environment, reach out to your advisor or connect with our team. We’re happy to review your strategy and help you make thoughtful, proactive adjustments.
TRANSCRIPT
All right, we’re in April, so let’s look back at the first quarter. It was a volatile few months, largely driven by geopolitical tension, especially the conflict in Iran. The S&P 500 was down a little over 4%, which, given everything going on, actually wasn’t that bad.
It really wasn’t terrible, and markets have already bounced back since then. But it’s still useful to look at periods like this because they show how different parts of a portfolio behave during stress.
Exactly. We think of these as test cases. We saw it in 2022, and we saw it again here. When markets get volatile, diversification matters. Our portfolios held up better, not because nothing went down, but because we weren’t overly concentrated in the areas that got hit the hardest.
That was especially true with some of the biggest stocks that had been leading the market. Those names fell much more sharply than the overall index. International stocks held up a bit better, which helped.
Right, and that’s really the point. It’s not about avoiding volatility entirely. It’s about how your portfolio behaves when it shows up.
That also showed up on the bond side. A lot of people expect bonds to act as a cushion during uncertainty, but that didn’t really happen this time. Inflation concerns, driven by rising energy prices, made things more complicated.
Which is why we’ve been very intentional about how we structure that part of the portfolio. Limiting interest rate sensitivity helped avoid some of that downside.
Outside of traditional markets, there were areas that did quite well. Gold had a strong quarter overall, even though it was volatile along the way.
And that’s important. Gold isn’t a short-term trade for us. It’s a long-term store of value. The fact that it sold off during the conflict didn’t surprise us. In times of stress, it can get used like a reserve asset, which reinforces its purpose rather than contradicting it.
Exactly. Over the long term, environments like this, with higher deficits, more spending, and more uncertainty, are generally supportive for that type of asset.
There were also other real asset exposures that benefited from rising energy prices, and areas like private credit and parts of real estate held up relatively well.
So when you step back, the takeaway is that while stocks were down, most other parts of the portfolio either held steady or did well. That’s what helped overall performance.
What’s interesting is how quickly things shifted. In just a few weeks, markets rebounded sharply. So now you get the opposite question. Should we be buying more because things feel better?
That’s where experience comes in. It’s tempting to react to headlines, but markets don’t move in a straight line with the news. Sometimes the expected outcome doesn’t happen at all.
Right. You can make a case for things getting worse, or a case for things improving. Both are possible.
Which is why the focus isn’t on predicting the next move. It’s on being positioned for a range of outcomes. If markets rally, you’re participating. If they struggle, you’re still in a position to withstand it.
One of the more concerning things right now isn’t actually the market. It’s sentiment.
Exactly. Consumer sentiment is at historically low levels, even lower than during major past crises. At the same time, markets are rising. That disconnect is important.
Part of that comes down to who actually benefits from rising markets. Not everyone owns stocks, and even among those who do, ownership is heavily concentrated.
So you end up with a situation where asset values are rising for some, while a large portion of the population is feeling pressure from higher costs and uncertainty. That creates a real divide.
You’re seeing that play out in other ways too. There are concerns about job security, rising gas prices, and even reactions to things like AI and infrastructure development.
All of that feeds into a broader risk environment. One of the key risks we’ve talked about for a while is stagflation, slow growth combined with higher inflation.
Which is tough because it puts pressure on multiple parts of the market at the same time.
Exactly. That’s one of the reasons traditional diversification, just stocks and bonds, doesn’t always hold up. You need other exposures that behave differently.
At the end of the day, there’s still a lot of uncertainty.
And that’s the point. We’re not trying to predict exactly what happens next. We’re building portfolios that can handle different outcomes so clients don’t have to make reactive decisions based on short-term noise.
That’s really what this comes down to. Being prepared, not reactive.
Exactly. That’s the goal.
Disclosures:This market review is presented for educational purposes only and should not be relied on for investment recommendations. References to specific investments are for illustrative purposes only and should not be interpreted as recommendations to purchase or sell such securities.
All indexes are unmanaged, and an individual cannot invest directly in an index. Index returns do not include fees or expenses. Past performance is no guarantee of future results. All investments involve risk, including the loss of principal. Investing in alternative assets involves higher risks and generally involves higher fees than traditional investments.
Although information contained herein is from sources deemed to be reliable, Morton makes no representation as to the adequacy, accuracy, or completeness of such information. You should consult with your financial advisor to thoroughly review all information before implementing any transactions and/or strategies concerning your finances.
