Copy of Tactical Changes May 2026

Greetings!

The market continues to demonstrate a familiar lesson:  momentum can overpower almost everything else, at least for a time. Despite ongoing concerns surrounding inflation, interest rates, geopolitics, and consumer stress, equity markets have remained remarkably resilient. Investors continue to reward companies delivering strong earnings, durable growth, and exposure to long-term themes like artificial intelligence and productivity gains. As long as that momentum persists, markets have shown a willingness to look past many of the headline risks that would typically create more sustained volatility.

At the same time, there are signs that the broader economy is becoming more uneven beneath the surface. Consumers are increasingly feeling the effects of higher prices and elevated borrowing costs, a trend reflected in recent consumer sentiment surveys. However, corporate America continues to hold up surprisingly well. Employment remains stable, business investment has remained constructive, and many companies have shown an ability to maintain profitability even in a higher-cost environment.

One area we continue to monitor is market breadth. While the major indexes have reached or approached record levels, leadership within the market remains relatively narrow. A smaller group of large companies has accounted for a disproportionate share of market gains, while many individual stocks remain well below prior highs. This does not necessarily signal an immediate problem, but it does suggest that the overall strength of the market may not be as broad-based as the headline numbers imply. Historically, healthier and more durable rallies tend to involve wider participation across sectors and company sizes.

As always, markets are balancing multiple competing narratives simultaneously. Strong corporate performance, persistent momentum, inflation concerns, consumer weakness, and evolving monetary policy expectations are all interacting at once. In environments like this, discipline and long-term perspective remain critical. While short-term market leadership may continue to shift, maintaining diversified exposure and staying focused on long-term objectives continues to be the most reliable approach for investors.

There are no tactical changes to portfolios in May. We hope everyone is enjoying Spring and getting ready for Summer!

Alan Brilliant

Co-Founder, Provizr

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