Tactical Changes June 2026

Greetings!

Over the past month, investors were reminded that good economic news is not always good news for markets. A stronger-than-expected jobs report reinforced the view that the U.S. economy remains remarkably resilient. While that is encouraging for businesses, workers, and consumers, it also led investors to rethink the path of interest rates. Market sentiment has shifted meaningfully, with investors now anticipating that the Federal Reserve may keep rates elevated longer than previously thought and potentially raise rates later this year.

At the same time, the equity market continues to be supported by optimism surrounding economic growth and corporate earnings. Despite concerns about higher rates, capital continues to flow toward technology, especially artificial intelligence, and other growth-oriented investments. Strong interest surrounding new investment opportunities, highlighted by several high-profile IPOs, suggests that investors are confident in growth outlooks.

The enthusiasm surrounding artificial intelligence has naturally led to comparisons with the internet boom of the late 1990s. While history never repeats exactly, periods of technological innovation often attract significant investment and rising valuations. At times, enthusiasm can evolve into speculation, causing markets to move ahead of the underlying reality. The challenge for investors is not simply recognizing when optimism may be running ahead of reality but determining when and how markets might respond. Periods of speculation often persist longer than expected, and market leadership can remain concentrated for extended periods before broader conditions change. While relatively weak market breadth has attracted attention recently, historical comparisons provide useful context but little predictive value.

As always, our focus remains on maintaining diversified portfolios designed to participate in long-term growth while managing risk as market conditions evolve. Rather than attempting to predict the next move in interest rates or the next chapter of the AI story, we continue to rely on a disciplined investment process that adapts as new information becomes available. Consistent with this approach, no tactical changes were made to Provizr portfolios in June.

Alan Brilliant

Co-Founder, Provizr

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