Summer Issue 2026 Checking in with Chris

Jul 27
17 min read

Welcome to Our Summer Issue

As we gather with family and friends to celebrate our nation's independence, we are grateful for the opportunity to serve our clients and community. We wish you a safe and enjoyable summer and look forward to helping navigate the financial opportunities and challenges ahead.

$Money Matters$

Businesses That Built America

As America celebrates its 250th birthday, here's a look at a few American companies that were founded before the Declaration of Independence was signed in 1776. These remarkably resilient businesses helped build and support the new nation and have been operating continuously ever since. So if you want to read a newspaper that reported on the Boston Tea Party, buy a shovel from the manufacturer that supplied them to Revolutionary War soldiers, or even sample George Washington's signature scent from the company that produced it, you can.

Sources: Internal Revenue Service, January 2, 2026; Experian, April 16, 2025

Sources: Business News Daily, 2026; Oldest.org, 2026

This content has been reviewed by FINRA.

Phased Retirement Can Help Smooth the Transition

Two-thirds of Gen X and 56% of millennials would prefer to gradually decrease their hours or work a more flexible schedule as they transition to retirement. About half of baby boomers and Gen Z have similar preferences.1

The federal government has offered a formal phased retirement program since 2014, allowing eligible full-time employees to collect half their pensions while working half time. Typically, at least 20% of their remaining work hours must be spent mentoring younger workers. And their pensions continue to grow based on part-time work.2

Private industry has been slower to adopt formal programs. Only 16% of employers, mostly larger companies, have regular phased retirement programs. However, 61% of companies have some experience with phased retirement, and with strong employee interest, it's likely that more will adopt formal programs.3

Win-win-win solution

A phased retirement program can be a positive experience for employees, employers, and customers.

For older employees, a reduced schedule offers a more gradual financial transition, maintaining a steady, if reduced, income that can help delay taking Social Security benefits and/or tapping retirement savings. Trying to live on 80% of salary, for example, might also be good practice for retirement budget management. And staying engaged in the workplace can offer mental and psychological benefits.

For employers, older workers provide experience and institutional knowledge that can help maintain and improve current quality while mentoring younger workers to help ensure a smoother transition.

For customers, older workers can provide dependability and continuity. In some cases, customers are also older, and long-time relationships can help maintain customer comfort levels.

Build your own program

If your company does not offer such a program, you might suggest an arrangement. Emphasize what you can continue to contribute and how it could help the company in the present and the future. But also be sure that the program will work for you. Here are some ideas to keep in mind.

Make sure you understand the effect of reduced hours on your benefits, such as health insurance and employer pension or retirement plan contributions.
If you cannot live on your reduced wages, you may have to use other sources of income, but you probably would not have to tap them as much as if you retired completely.
One of the greatest benefits of phased retirement is that you could delay claiming Social Security, with your benefit increasing 8% annually after full retirement age (FRA), up to age 70. However, if you do claim Social Security before FRA and continue to work, you will receive a permanently reduced benefit for claiming early and be subject to the retirement earnings test, which may temporarily reduce your benefit payments until you reach FRA. Once you have reached FRA, the lost benefits from the earnings test will be added to your benefit amount.

Valuing Older Employees Percentage of employers who agree completely or somewhat with the following statements.If you phase out of your current job, make sure you don't end up trying to do all of your former work in fewer hours. This could be especially problematic for salaried workers in project-oriented positions.

Be sure you and your supervisor are clear on the requirements of your reduced workload.

1) Kiplinger, January 7, 2026

2) U.S. Office of Personnel Management, August 7, 2014

3) Fortune, March 22, 2024 (most recent data

Source: The Principal Financial Well-Being Index, 2024 (most recent data)

High Prices Force Buyers to Stretch Out Car Loans

In the fourth quarter of 2025, the average monthly payment was $767 for new cars and $537 for used cars. A growing percentage of car buyers are taking out loans with longer repayment periods of six or seven years, which might help someone qualify to buy a more expensive car, but it also pushes up the cost of ownership over time. For example, a borrower with a five-year, $40,000 car loan with a 6.5% APR would have monthly payments of $783 and would pay$6,959 in total interest. A seven-year

loan at the same rate would have more affordable monthly payments of $594, but interest payments would total $9,894, an additional $2,935 over the life of the loan.

The typical American wage earner would have to work 36 weeks to pay for the average new car, so it's no wonder that drivers are hanging on to their old cars as long as possible. The average age of passenger cars on U.S. roads rose to 14.5 years in 2025.

Sources: Experian, State of the Auto Finance Market Q4 2025; S&P Global, 2025 This content has been reviewed by FINRA.

Travel Tips for Globetrotters

About 76% of Americans surveyed by Pew Research Center said they have traveled outside of the United States at least once; 50% have visited one to four countries, while 26% have been to five or more. Nearly one-fourth of respondents (23%) have never traveled internationally.1

If you're planning a foreign vacation, here are some suggestions to help keep your trip on track.

Obtain required documents. A passport (or in some cases a passport card) is required to enter and return from all foreign countries, including Canada and Mexico. Your passport should have at least six months of validity beyond the dates of your trip. It can take several months to obtain or renew a passport, so procrastinating on this task could put you in a serious bind and/or force you to pay costly rush fees. U.S. citizens can travel to many foreign countries without obtaining a visa, but be sure to follow the rules for all countries on your itinerary. Some countries require travelers to complete an electronic pre-screening process prior to entry.

Alert your bank and credit card company. Financial institutions monitor international transactions, so it's wise to inform them that you will be traveling and ask about applicable fees. Carry at least two cards: a debit card that will allow you to withdraw money from foreign ATMs and a chip-enhanced credit card with a PIN set up before you leave. Although the credit card may only require a signature in the United States, it might require a PIN overseas.

Pay like a local. Know the exchange rate to convert dollars to local currency, and vice versa. Foreign bank ATMs may offer better exchange rates than a currency exchange, but be aware of fees wherever you exchange money. Merchants, restaurants, and hotels might accept payment or quote prices in U.S. dollars, but you will typically get a better price if you pay in the local currency, whether using cash or a credit card.

Consider your health needs and coverage. Some countries may recommend, or in some cases require, vaccinations for diseases that are rare in the United States (such as typhoid, yellow fever, and polio). To help protect your health and your finances, you should be aware of the public health situation in any country you visit and determine whether your medical insurance will cover you overseas. If not, consider purchasing a short-term travel policy. Bring enough prescription medicine, plus extras, in original labeled containers in your carry-on luggage. A note from your doctor listing medications may be helpful.

For in-depth information on foreign travel, including passports and visas, visit travel.state.gov. For health guidelines and country-specific public health information, see cdc.gov/travel.

1) Pew Research Center, December 6, 2023 (percentages rounded to the nearest whole number)

This content has been reviewed by FINRA.

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker/dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Legacy Capital Advisors, LLC and Cambridge are not affiliated.

Checking in with Chris$$$$$$$$$$$$$$

The second quarter of 2026 was marked by a remarkable series of significant global events.

Most notably, the conflict involving Iran has entered a ceasefire period, providing at least a temporary reduction in regional tensions. Meanwhile, oil shipments through the Strait of Hormuz have resumed normal operations, with more than 20 million barrels flowing through the critical waterway each day. To help ensure the continued movement of oil and global commerce, the United States has maintained a strong naval presence in the region, including multiple aircraft carrier strike groups.

So, what has really been the impact of the past 90 days of geopolitical turmoil?

Despite the uncertainty, oil prices have retreated and are now trading below the levels seen at the onset of the conflict. China has diversified its oil purchases, sourcing more from other countries as Iran is increasingly viewed as an unreliable supplier. At the same time, nations that depend heavily on the steady flow of oil, fertilizer, chemicals, and liquefied natural gas have accelerated efforts to secure alternative sources for these critical resources.

The importance of stable energy supplies became evident when parts of Europe reportedly faced jet fuel inventories of less than 30 days before the ceasefire allowed shipments to resume. Yet, despite concerns over inflation, cautious consumers, and the possibility of an AI-driven market bubble, stock markets around the world have continued their upward climb.

While the rollback of tariffs provided some economic relief, much of that benefit was offset by sharply higher energy costs during the quarter. As an example, during a trip to Pennsylvania in early April, diesel fuel prices along the turnpike approached $8 per gallon—an illustration of how global events can quickly impact everyday costs closer to home.

Despite higher interest rates, the market rally continued to broaden during the quarter, with gains extending well beyond a handful of large technology companies. While large-cap stocks have led the market for the past three years, leadership has recently shifted toward mid-cap and, even more notably, small-cap companies, which have begun to outperform their larger peers.

Financial stocks, particularly banks, along with healthcare companies, have been among the strongest performers over the past month despite ongoing economic uncertainty and elevated borrowing costs. Globally, spending remains robust as governments, businesses, and consumers continue investing in data centers, energy production, infrastructure projects, travel, and food at unprecedented levels.

History also provides some perspective on recent energy market volatility. In each of the last five major oil price spikes, prices generally returned to pre-spike levels within six months. That historical pattern likely explains why higher spot oil prices failed to meaningfully impact the futures market, where December delivery contracts continued to reflect expectations for lower prices ahead.

The Federal Reserve

In May, Kevin Warsh assumed the role of Chairman of the Federal Reserve, ushering in a new chapter for U.S. monetary policy. While the Administration has expressed a desire for lower interest rates, the Federal Reserve remains an independent institution, and any policy changes will require broad support among members of the Federal Open Market Committee.

At this point, it appears unlikely that significant rate-cut discussions will gain momentum until the fourth quarter. Inflation remains above the Federal Reserve's long-term target, with recent readings exceeding 4%, even as signs of weakness have begun to emerge in the labor market. Policymakers will likely need additional evidence that inflation is moving sustainably lower before considering a more accommodative stance.

The labor market softened more than expected during May and June, which could provide the Federal Reserve with greater flexibility to reduce interest rates later this year. Should inflation continue to moderate, lower rates would benefit homeowners, businesses, and borrowers across the economy.

Investors should also expect a more measured communication approach from the Federal Reserve. In recent years, markets have reacted sharply to every speech and policy comment. A less frequent and more deliberate communication strategy could help reduce market volatility and allow investors to focus more on economic fundamentals than on interpreting every statement from policymakers.

So, considering all of this, what will happen next….

Despite the geopolitical uncertainty and ongoing pressure from higher energy costs, the global economy is expected to continue expanding at a healthy pace, with worldwide growth projected at approximately 2.9% in 2026. In the United States, the Administration's economic advisors are forecasting GDP growth of more than 4% for the year, reflecting continued strength in consumer spending, business investment, and infrastructure development.

Europe, however, continues to face significant economic challenges. Slower growth, persistent inflation, and elevated energy costs are expected to weigh on economic activity across much of the continent. Energy prices in some European markets remain substantially higher than those in the United States, creating an ongoing headwind for both businesses and consumers. At the same time, European nations have significantly increased defense spending, with expenditures approaching 4% of GDP—the highest levels seen since the aftermath of World War II.

Inflation also remains a key concern. While price pressures have eased from their peak levels, inflation appears likely to remain elevated, hovering near 3.5% through the remainder of the year. Higher energy costs, geopolitical tensions, supply chain adjustments, and tariff-related expenses continue to place upward pressure on prices, suggesting that the path back to long-term inflation targets may be slower than many had hoped.

Where do stock and bond prices go from here?

Despite ongoing geopolitical tensions and economic uncertainty, stock markets continue to reach new highs. A key driver has been corporate earnings, which significantly exceeded expectations during the most recent quarter and fueled substantial gains across a number of industries.

Technology companies tied to artificial intelligence, data centers, and digital infrastructure were among the strongest performers. Companies involved in data storage, semiconductors, and advanced computing have benefited from surging demand as businesses continue investing heavily in AI-related technologies. Demand for computer chips, data storage, and processing power remains exceptionally strong, allowing many manufacturers to raise prices while still struggling to keep pace with orders.

The healthcare sector also delivered impressive results. Eli Lilly reported sales growth of more than 50%, driven largely by continued demand for its weight-loss and diabetes treatments. Looking ahead, the long-term growth trends surrounding artificial intelligence, healthcare innovation, and digital infrastructure appear likely to remain powerful market drivers through the remainder of the decade.

Consumer technology remains another bright spot. Apple reported exceptionally strong earnings, supported by robust iPhone sales and growing consumer interest in AI-enabled devices. As artificial intelligence becomes increasingly integrated into everyday technology, companies that provide the underlying hardware, software, and infrastructure stand to benefit from continued investment and adoption.

Meanwhile, the bond market continues to offer attractive opportunities for income-focused investors. Investment-grade corporate bonds are yielding more than 5.5%, providing income levels that have been difficult to find for much of the past decade. While inflation remains elevated, one advantage of a higher-rate environment is that savers and retirees can continue to earn more attractive returns on fixed-income investments than they have in many years.

Midterm elections

Looking ahead, investors should expect increased market volatility during August and September as markets assess the potential outcomes of the upcoming election. Election years often bring heightened uncertainty, and financial markets typically respond to changing expectations regarding fiscal policy, taxation, regulation, and government spending.

Current projections suggest the possibility of a divided government following the election, with control of Congress potentially split between the two major parties. Historically, financial markets have generally responded favorably to periods of divided government, as significant policy changes tend to be more difficult to enact, creating a more predictable environment for businesses and investors.

While election headlines are likely to dominate the news cycle in the months ahead, history shows that markets are often more resilient than many expect. Once election uncertainty has passed and investors gain greater clarity regarding the policy landscape, stocks have frequently delivered strong returns during the year following midterm elections.

As always, we encourage investors to remain focused on their long-term goals rather than short-term political developments. Economic fundamentals, corporate earnings, interest rates, and consumer activity have historically played a much larger role in determining long-term market performance than election results alone.

Artemis II

NASA’s Artemis II mission lifted off from the Kennedy Space Center in Florida at 6:35 p.m. EDT on April 1, 2026, marking the first crewed flight of the Orion spacecraft and the Space Launch System (SLS) rocket. The mission carried four astronauts—Reid Wiseman, Victor Glover, Christina Koch, and Canadian Space Agency astronaut Jeremy Hansen—on a 10-day journey around the Moon without landing, testing deep-space systems and life support for future lunar missions. The world is once again looking skyward with a sense of wonder and anticipation. Plans are already underway to return to the Moon in 2028, marking the beginning of a new era of exploration. And if those ambitions are realized, the next giant leap for mankind could be a human mission to Mars by 2035.

The AI Build-Out: What Could It Mean for the U.S. and Global Economies?

To borrow a baseball analogy, we are only in the third inning of a nine-inning game when it comes to artificial intelligence and the massive infrastructure being built to support it. The rapid expansion of data centers, computing power, and energy capacity is still in its early stages.

Consider the scale of what is already underway. Elon Musk's companies are developing one of the world's largest AI computing facilities, expected to house more than one million NVIDIA GPU processors. This unprecedented computing power will support applications across Tesla and SpaceX while also providing capacity to hyperscale technology companies for large language model training, AI inference, and advanced data processing.

At the same time, both public and private capital continue to flow into strategic industries tied to the AI revolution. Investments are accelerating in artificial intelligence, quantum computing, rare earth minerals, advanced semiconductors, energy infrastructure, and space technologies—all sectors viewed as critical to the next generation of economic growth and national competitiveness.

The implications for the economy could be profound. Building the infrastructure necessary to power artificial intelligence will require trillions of dollars in investment across data centers, electrical grids, power generation, networking equipment, semiconductors, and software. In terms of economic impact, the AI build-out has the potential to rival—or even exceed—the scale of China's industrial expansion from 2000 to 2010, which reshaped global trade, manufacturing, and economic growth.

While the ultimate winners and losers remain uncertain, one thing is becoming increasingly clear: artificial intelligence is not simply another technology trend. It is rapidly evolving into one of the largest investment and infrastructure cycles of our generation.

But That's Not the Whole Story...

The impact of artificial intelligence extends far beyond technology companies. Increasingly, AI-related investment is becoming a powerful driver of economic activity, creating demand across a wide range of industries. In many ways, the "old economy" is now benefiting alongside the digital economy as businesses race to build the infrastructure required to support this transformation.

The scale of investment is staggering. As new data centers, power facilities, and industrial projects come online, demand for construction equipment, engineering services, raw materials, and energy infrastructure continues to accelerate. Caterpillar recently reported strong growth as customers invest heavily in the machinery needed to support these large-scale projects. Infrastructure and engineering firms, along with producers of steel, copper, aluminum, fertilizer, and industrial chemicals, are also benefiting from this surge in spending.

Perhaps one of the most striking examples of this demand can be found in the power generation industry. The electricity required to support AI computing, data centers, and advanced manufacturing is growing at an unprecedented pace. In fact, demand has become so strong that some power equipment manufacturers report order backlogs extending years into the future. For investors, it is a reminder that the AI revolution is not just about software and semiconductors—it is creating opportunities across nearly every corner of the economy.

The bottom line: while artificial intelligence may be the catalyst, the benefits are spreading far beyond Silicon Valley, fueling growth in industries that many investors may have overlooked just a few years ago.

Roadblocks to Success: The Power Challenge

While the opportunities surrounding artificial intelligence and data center expansion are enormous, there are also significant challenges to overcome. The biggest hurdle facing the continued growth of data centers is power generation.

The demand for electricity is rising rapidly as companies build larger and more powerful computing facilities. This surge in demand is placing pressure on existing power grids and contributing to higher electricity costs, particularly for power drawn directly from traditional utility sources.

To address this challenge, some of the largest technology companies are pursuing alternative energy solutions. For example, Meta's massive data center project in Louisiana is leveraging nearby natural gas resources to provide a reliable and cost-effective source of electricity and cooling capacity.

Some may wonder whether Ohio is being left behind in this transformation. The answer is quite the opposite. Ohio has become a major hub for data center development, with more than 40 facilities currently planned or under construction across the state. The region is also seeing renewed investment in nuclear energy, including both new nuclear development and the modernization of existing facilities along the Ohio River.

Recent efforts to streamline the approval and construction process for advanced energy projects could significantly accelerate the timeline for bringing new power capacity online. Companies such as Oklo are also advancing next-generation nuclear solutions designed to provide reliable energy for high-demand customers, including the growing number of data centers in the New Albany area.

The message is clear: the future of artificial intelligence will depend not only on computing power, but also on the ability to generate and deliver the enormous amounts of energy required to support it.

More Roadblocks: Copper, Fiber, and Memory

The AI revolution faces several important challenges, including the need for enormous amounts of infrastructure. Data centers require vast quantities of copper wiring, but even more importantly, they depend on fiber optic networks to move data quickly and efficiently. Because fiber generates less heat, it also helps reduce cooling demands. Companies such as Corning, Arista Networks, Ciena, and Lumentum are seeing significant demand as they work to expand capacity.

Another major bottleneck is memory. Modern data centers require unprecedented amounts of storage and processing capability. Companies including Micron, Seagate Technologies, Western Digital, and others are racing to keep pace with demand. From the photos stored on our phones to the massive amounts of information businesses maintain, the world is generating and storing more data than ever before—and that trend is only accelerating.

Energy in All Forms

The race for artificial intelligence and computing power will ultimately be a race for energy. The countries and companies that can secure reliable, affordable power will have a significant advantage in the next era of economic growth.

Energy producers and power companies—including Chevron, ExxonMobil, ConocoPhillips, NextEra Energy, Constellation Energy, Southern Company, Vistra, and others—are investing aggressively to expand capacity and meet the unprecedented demand created by data centers, AI, and advanced technology.

The future of computing will depend not only on innovation, but on having the energy infrastructure to power it.

SpaceX: The Next Frontier

As many of you know, SpaceX made headlines in June by becoming a publicly traded company and immediately capturing the attention of investors around the world. By its second day of trading, it had become one of the five largest companies globally by market value—a milestone that took companies like Microsoft and Amazon decades to achieve.

Elon Musk’s vision for SpaceX extends far beyond rockets. His long-term goal is to build a space-based economy, expand access to advanced technology, and create new opportunities through satellite communications, energy innovation, and human exploration beyond Earth.

SpaceX is not alone in this rapidly growing industry. Companies such as Rocket Lab, AST SpaceMobile, GE Aerospace, and Honeywell Aerospace are attracting significant investment as the aerospace sector enters a new era of growth and innovation.

The market believes this industry has the potential to “rocket” higher in the years ahead. Musk’s vision of establishing a million-person presence on Mars by 2035 is certainly ambitious—but his history of challenging conventional thinking and proving skeptics wrong has made the world pay close attention.

Healthcare: A Major Beneficiary of the AI Revolution

Healthcare may become one of the greatest beneficiaries of artificial intelligence and the massive computing power being developed to support it. From drug discovery and diagnostics to personalized medicine and improved patient care, AI has the potential to transform nearly every aspect of the healthcare industry.

After several challenging years, biotechnology is showing signs of renewed momentum. Advances in technology, improved profitability, and growing investor interest are bringing capital back into innovative companies focused on the next generation of medical breakthroughs.

At the same time, established pharmaceutical leaders such as Johnson & Johnson, Eli Lilly, and AstraZeneca continue to benefit from strong demand, breakthrough therapies, and increasing global healthcare needs. The combination of AI-driven innovation and continued medical advancement could make healthcare one of the most important growth sectors in the years ahead.

As we celebrate the 250th anniversary of our young nation, it is worth reflecting on the extraordinary strengths and achievements that make America truly exceptional.

Although the United States represents only about 4% of the world's population, we produce approximately 27% of global GDP and are home to a remarkable share of the world's leading companies, most successful sports franchises, and highest-grossing films. This success is rooted in a long history of innovation—from the Erie Canal and railroads to computers, the internet, and now artificial intelligence.

America's unique combination of world-leading research and development, a powerful ecosystem of universities, entrepreneurs, and investment capital, abundant natural resources, and the strength of the world's leading reserve currency has created a remarkable engine of growth and resilience.

Through wars, economic challenges, crises, and pandemics, the American people and our markets have continued to adapt, innovate, and achieve extraordinary results. We are truly fortunate to live in a nation built on opportunity, ingenuity, and the belief that those willing to work, invest, create, and dream big can help shape the future.

As we look ahead to the next 250 years, let us carry forward that same spirit of gratitude, optimism, and determination.

Happy 250th Birthday, America!

Chris... June...Alexandria

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Legacy Capital Advisors LLC and Cambridge are not affiliated

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