46 North Financial: Quarterly Insight

1. Quick Stats: Q1 2026 Performance

● S&P 500 Index: down 4.35% through Q1, up 17.77% over last twelve months Source

● Bloomberg Aggregate Bond Index: down 0.05% through Q1, up 4.35% over last twelve months

Source

2. A Note from 46 North

Welcome to 46 North Financial. I hope this letter finds you well getting ready for spring. My goal at 46

North Financial remains focused on your long-term financial health, goals and legacy.

Source

3. Q1 2026 Market Recap: Volatility and Reality

The first quarter had plenty to digest. We saw a barrage of heavy headlines: the escalation of conflict in the Middle East, Brent Crude oil prices spiking, and a sudden pivot in Fed expectations, to say nothing of the headlines that grabbed everyone’s imagination at the beginning of the year like AI buildout and Federal Reserve independence. The current geopolitical conflict coupled with a steady but lukewarm US economy presents a wider range of outcomes than we were looking at in January. This was all a recipe for a choppy stock market in March. While this created significant intraday noise and individual stock swings, the overall market decline remained relatively contained at less than 5%. It is a powerful reminder that while global events spark short-term fear, the underlying structural health of the U.S. economy often acts as a shock absorber. Please also remember that short-term volatility and long-term market direction are rarely correlated.

In 2025, market gains were driven by a combination of expanding multiples (investors paying more for

every dollar of profit) and increased earnings (profit of the company). So far in 2026, the focus has

shifted to actual earnings delivery. This is a healthier, albeit more demanding, stage of the market cycle

where companies must prove their value through bottom-line growth rather than just optimistic

sentiment. Healthier still, a larger swath of companies is driving the earnings growth, not just the top

few. Source

5,633