Investment Update: March 2026
Dear Ambassador Family,
We wanted to share a brief mid-quarter update on portfolio positioning and our current market outlook.
Mid-Quarter Investment Update
In light of the recent events in Iran, we thought this would be a good time to give you a mid-quarter update on your investments.
Since late January, we have been reducing risk in your portfolios. Put simply, the outlook has become more murky, though not clearly bearish.
While we are not outright bearish, more risks than opportunities have emerged since late last year. High valuations, overheated investor sentiment, and cracks in selected credit markets led us to prune risk. Midterm elections in the US also potentially offer a mild headwind to markets this year.
We pruned or sold out positions, especially in areas that had strongly performed. Such areas included equities perceived to benefit from the AI capex surge, certain suppliers, and precious metals.
Conversely, we have built up positions in fixed income (US Treasury), base commodities (energy), and hedged equity. Your portfolios also have a healthy level of cash that will be redeployed into opportunities as they present themselves. However, we believe it is prudent to be patient.
With regard to Iran, it would not surprise us to see near-term volatility continue over the next several weeks. Fears of a spike in oil and potential negative impact on the economy will grow until we get closer to a resolution of the situation. Historically, near-term spikes in fear have presented buying opportunities. We continue to monitor developments.
As always, please reach out if you have any questions about your portfolio or would like to discuss your investment plan in more detail.
Sincerely,
Petr Burunov, CFP®
President / Wealth Strategist