HPWG February 2026 Market Update Podcast

Todd Hoffman: Hello, and welcome to the February edition of the Hoffman Private Wealth Group Podcast. I'm Todd Hoffman, Certified Portfolio Manager and CFP®, Founder and Managing Director of Hoffman Private Wealth Group at Steward Partners. Thank you for joining us.

Jenna: It's great to be back. Todd, how was your January?

Todd: It was a productive month. The Markets have been good, at least up to the last couple of days, and were off to a pretty good start to the year. How are you settling into the year?

Jenna: Good, busy, but good, I have been meeting with a lot of clients. It is always a pleasure to catch up with people. I see that your calendar is also jam-packed.

Todd: Yes, it has been. I feel the same way. I like coming to work when I have people I like talking with on the calendar. We have had a lot of interesting meetings so far this year and we have also been meeting with client references, which is always a pleasure. On top of that the markets have been keeping me very busy.  January has required even more research than usual, resulting in a lot of long days. It seems like it went by in a blink.

Jenna: Last quarter, we discussed volatility. Have markets stabilized in January?

Todd: Not entirely. While the month was positive overall, we experienced several volatile two- and three-day periods. The markets are currently super sensitive even to minor news.

I will go through a few key developments for investors so far this year.

The Federal Reserve held interest rates steady in January.  According to FactSet, keeping the target range at 3.50%–3.75%. During the Fed announcement Chair Jerome Powell also described the economy as solid, with inflation easing, but still above the 2% target and with a job market which is stabilizing. Also, they U.S. stock indexes were mixed with the S&P 500 briefly breaking through 7,000, even with the tech leadership under pressure, even while several companies have reported profit beats.   

According to The Guardian, gold and other commodities remain elevated, with gold recently reaching record levels, before pulling back slightly around dollar volatility.

According to AP News, mortgage rates have moved a little higher but remain near multi-year lows at about 6.1% on a 30-year fixed, which is a level which is supportive for housing.

Were still in the middle of first-quarter earnings reports, which will go on for most of the next month and as expected, they have been solidly higher, for the majority of companies so far, according to FactSet.

Jenna: How are bonds and fixed income - how are they performing so far this year?

Todd: Fixed income remains attractive ns CCORDING TO THE Wall Street Journal, yields are above long-term averages and credit conditions remain healthy.

Municipal bonds prices have picked up a little, regaining strength after last year's heavy issuance weighed on valuations.

The recent Fed pause supports locking in income before potential rate cuts later in 2026 which aligns with our approach of utilizing fixed income to support income during periods of equity volatility to avoid selling stocks at lower prices.

Jenna: So in summary, Fundamentals remain supportive, the policy environment is accommodative, and earnings reports are constructive.

Todd: Yes, I believe that’s a good summary.

Jenna: Last quarter, you mentioned you were seeing strength in the international markets. Is that still the case?

Todd: Yes. FactSet says international markets, including emerging markets, have performed comparably to U.S. equity markets and continue to benefit from ongoing dollar weakness. We also added to our international holdings during January.

Jenna: I saw in the news that President Trump had announced his support for an incoming Fed Chair. Is this positive for the markets?

Todd: Yes, this morning President Trump announced on Truth Social that Kevin Warsh is his nominee to succeed Jerome Powell as Federal Reserve Chair in May. Warsh has a lot of experience and has a strong reputation. He served as Federal Reserve governor from 2006 to 2011; he is a Morgan Stanley alumnus and currently is a fellow at the Hoover Institution.

According to NBC News, Warsh has been critical of how cautious the Fed's has been at easing which I am sure is music to trumps ears.

Warsh will now face Senate confirmation hearings, which are expected to focus on Fed independence and his ability to resist political pressure from the White House.  I believe with Trump behind him it is likely he will be approved.

Jenna: I read that the U.S. has deployed the USS Abraham Lincoln carrier strike group and several guided-missile destroyers to the Middle East region near Iran. Officials describe the move as promoting "regional security and stability." Has this affected the markets?

Todd: I think this doesn’t help the markets, but I can’t say it has caused panic yet. My concern is Iranian military leaders continue to warn that they will deliver a "crushing response" to any U.S. attack. Tehran has signal that U.S. bases, regional infrastructure, and shipping could become targets if a conflict begins. Additionally, CNN reports that Iran says it will respond by attacking Tel Aviv in Israel. This could create Isreal to escalate preemptively attack Iran and I will be monitoring the situation closely.

Jenna: Perhaps you can lighten the mood a bit. Do you have any jokes for us?

Todd: Just one today.

Jenna: Okay, let's hear it!

Todd: Three golf clubs walk into a bar. The putter orders a beer, the iron orders a whisky, and the third golf club says: "Nothing for me, I'm the driver."

Jenna: Cute! Do you have any closing comments?

Todd: As we move through 2026, our focus remains positioning portfolios for long-term growth, generating Income and Managing risk and tax efficiency.

If you know anyone who might benefit from our guidance, we'd appreciate an introduction. Setting up a quick conference call, or joint introductory email with phone numbers works well, and we'll take it from there.

Thank you for listening to the February Hoffman Private Wealth Podcast. We appreciate your trust and wish you a healthy, successful, and prosperous Month Ahead!

Jenna:Thank you for tuning in to the Hoffman Private Wealth Group Podcast. Please share this episode with someone you care about.