Weekly Market Insights | Stocks Slip; Attention Shifts to Bonds

Stocks declined last week as global investors fretted about oil-supply-induced inflation.

The Standard & Poor’s 500 Index declined 1.43 percent, while the Nasdaq Composite Index slid 2.05 percent. The Dow Jones Industrial Average slipped 0.85 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.40 percent.1,2

Bond Yields Up, Stocks Under Pressure

Bond yields spiked at the start of the week, putting a squeeze on stock prices. The yield on the 30-year Treasury bond hit a 19-year high.

Markets continued their slide on Tuesday as investors fretted over inflation. Yields on bonds around the world rose to multi-decade highs.3,4

Stocks steadied, and bond yields fell midweek as investors responded to the Treasury Department’s announcement that it would buy back long-term debt to help stabilize interest rates. However, the Wednesday morning rally petered out as the session progressed into the afternoon.5,6

Stocks rebounded to finish a tough week on a positive note despite rising oil prices.7

A Bee in the Bonnet

Last week, yields on bonds issued by sovereign governments around the world rose to multi-year highs, including in Japan and throughout Europe.

Investors in these bonds decided they needed higher yields to compensate for ongoing global issues. As a result, the cost to borrow money went up. And because bond prices and yields move in opposite directions, the value of these bonds fell.

The Treasury Department stepped in on Wednesday to say that it would double the size of its current repurchases of longer-term (10- to 30-year) Treasury debt. It’s uncertain how the move could influence markets.8

This Week: Key Economic Data

Tuesday: S&P Cotality Case-Shiller Home Price Index. New Home Sales. Consumer Confidence (Conference Board).

Wednesday: Durable Goods. Gross Domestic Product (GDP), 2nd estimate. Personal Consumption Expenditures (PCE) Index.

Thursday: Weekly Jobless Claims. Trade Balance in Goods. Wholesale Inventories. Retail Inventories.

Friday: Consumer Sentiment (U. Michigan).

Source: Investor’s Business Daily - Econoday economic calendar: August 21, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Tuesday: Intuit Inc. (INTU)

Wednesday: Nvidia Corporation (NVDA), CrowdStrike (CRWD), Salesforce, Inc. (CRM), Synopsys, Inc. (SNPS)

Thursday: Marvell Technology, Inc. (MRVL), Autodesk, Inc. (ADSK)

Source: Zacks, August 21, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

“The most difficult thing is the decision to act, the rest is merely tenacity.”

– Amelia Earhart

Journal with AI for Better Self-Reflection

Try keeping a long-running chat with AI where you regularly dictate journal entries, either daily or weekly. Over time, AI builds rich context about your goals and challenges, making it a powerful thinking partner. You can even ask: "Based on our conversations, how would future me solve this problem?"

Tip adapted from creatoreconomy.so9

3 Stretches for Your Lower Back

We spend so much time sitting in our cars and at our desks that it's no wonder that our lower backs can become tight and even sore. These three lower back stretches will help improve your flexibility and recovery and may even help if you have lower back pain.

  • Figure 4 Stretch: The Figure 4 stretch will stretch your glutes, hamstrings, and lower back. To do the stretch, lay on your back with both feet on the ground. Then, cross your left foot over your right knee. Gently bring your right leg to a 90-degree angle. If you would like to increase the intensity of the stretch, grab the back of your thigh and bring your right knee toward your torso. Repeat on the other side.
  • Inner Thigh Stretch/Butterfly Stretch: This stretch addresses your inner thigh and lower back. Sit on the ground and bring your feet together in front of your knees with the soles of your feet touching. Let your knees fall to the side. To increase the stretch, bring your feet closer to your torso.
  • Pigeon Pose: To assume the pigeon pose, bring one leg to 90 degrees from your torso and stretch the other leg behind you so your right calf is perpendicular to your hips. To intensify the stretch, bend at the hips over your front leg. Repeat on both sides.

Tip adapted from Very Well Fit10

Its body of stone shields a fiery heart. Under sufficient pressure, its head will depart. What is it?

Last Week's Riddle: I never complain no matter where I am led; I go around in circles, yet move straight ahead. What am I?

Answer: A wheel.

Santorini island, Greece

Footnotes And Sources

1. WSJ.com, August 21, 2026
2. Investing.com, August 21, 2026
3. WSJ.com, August 17, 2026
4. CNBC.com, August 18, 2026
5. CNBC.com, August 19, 2026
6. CNBC.com, August 20, 2026
7. WSJ.com, August 21, 2026
8. CNBC.com, August 19, 2026
9. creatoreconomy.so, June 25, 2025
10. Very Well Fit, November 18, 2025

Weekly Market Insights | Inflation Cools Again; S&P Up Third Week

Stocks were mixed over a sleepy summer week, as cooling inflation lifted markets while sluggish retail sales nipped at investor sentiment.

The Standard & Poor’s 500 Index added 0.36 percent, while the Nasdaq Composite Index edged up 0.14 percent. The Dow Jones Industrial Average slid 0.56 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 0.26 percent.1,2

Third Straight for S&P 500

Stocks began the week with mild declines, with megacap tech names under pressure as investors anxiously awaited inflation updates.3

But spirits lifted midweek as a July inflation report showed consumer prices increased at a slower pace, leading investors to hope the Fed would not adjust rates at its next meeting.

The AI trade also jumped back into the driver’s seat to add momentum. The rebound rally extended into Thursday as investors cheered a cooler-than-expected report that showed wholesale inflation slowed over the prior month. Falling oil prices also gave stocks a boost.4,5

While stocks slipped slightly on Friday, the S&P 500 and Nasdaq each logged their third consecutive winning week.6

Inflation Cools, Spending Slows

Wednesday’s Consumer Price Index (CPI) report showed consumer prices rose 0.1 percent in July over the prior month and 3.4 percent over the prior 12 months. Both figures came in as expected, which was welcomed news for investors.

Thursday’s Producer Price Index (PPI) showed that the pace of wholesale inflation also slowed more than expected.7

But the inflation update was somewhat countered by news that consumers spent less in July. Economists expected a 0.1 percent increase in July retail sales over the prior month, but they actually fell 0.6 percent month-over-month.8

This Week: Key Economic Data

Monday: NAHB Housing Market Index.

Tuesday: Housing Starts. Import Prices. Industrial Production. Capacity Utilization. Pending Home Sales.

Wednesday: Fed Meeting Minutes from July published.

Thursday: Weekly Jobless Claims. Leading Indicators.

Friday: Purchasing Managers Index (PMI)—Manufacturing. PMI—Services.

Source: Investor’s Business Daily - Econoday economic calendar: August 14, 2026.
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Tuesday: The Home Depot, Inc. (HD), Keysight Technologies Inc. (KEYS)

Wednesday: Analog Devices, Inc. (ADI), The TJX Companies, Inc. (TJX), Lowe’s Companies, Inc. (LOW), Target Corporation (TGT)

Thursday: Walmart Inc. (WMT), Deere & Company (DE), Ross Stores, Inc. (ROST) 

Source: Zacks, August 14, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

"The secret of happiness isn't found in seeking more, but in developing the capacity to enjoy less."

–Socrates

Blueberries: Small but Mighty

Don't let their size fool you! Blueberries pack a serious nutritional punch. Among the most antioxidant-rich foods you can eat, they're as good for your body as they are delicious. Stir them into yogurt or cottage cheese for a quick, satisfying snack, muddle them into a glass of sparkling water for a naturally sweet drink, or fold them into homemade muffins and pancakes for a colorful, nutritious upgrade. Keep a bag in the freezer so you always have some on hand.

Tip adapted from Healthline9

Rest, Relaxation, and Healthy Nutrition

Here are some tips on how to stay healthy, even during long trips:

  • Before heading to the airport, pack a snack box of fruits, veggies, nuts, lean proteins, and healthy bars. This way, you won’t be tempted by chips and soda while you wait for your flight.
  • Get plenty of sleep. Like at home, getting a good night’s sleep while traveling is essential. Sleep helps your body reset for the next day and will help you maintain your weight.
  • Hydrate often.
  • Take your vitamins. A daily pill organizer can help you remember to take them, even while traveling. 

There’s no reason why you must sacrifice all your hard work and healthy habits while visiting family or heading to warmer destinations. Continuing a healthy lifestyle while traveling will help you have even more fun!

Tip adapted from Sharp.com10

I never complain no matter where I am led; I go around in circles, yet move straight ahead. What am I?

Last Week's Riddle: Buried in wood from one end to the other, my head is exposed while I keep things together. What am I?

Answer: A nail.

Saffron-crowned Tanager (Tangara xanthocephala) 
Manizales, Colombia

Footnotes And Sources

1. WSJ.com, August 14, 2026
2. Investing.com, August 14, 2026
3. CNBC.com, August 11, 2026
4. CNBC.com, August 12, 2026
5. CNBC.com, August 13, 2026
6. WSJ.com, August 14, 2026
7. CNBC.com, August 12, 2026
8. WSJ.com, August 14, 2026
9. Healthline.com, April 14, 2026
10. Sharp.com, July 17, 2026

Understanding Market Risks: Why Diversification is Our Backbone

I am reaching out to you today because a few clients recently asked me if IBM’s sharp decline over the last two days (falling -36%) was going to hurt their Schwab portfolios.
It is a great question, and the short answer is: No, your portfolio is well-protected.
To understand why, we have to look at how we build and manage your portfolios. In the world of investing, there are three primary levels of stock market risk. Understanding the differences between them—and how we manage them—is key to achieving long-term, stress-free financial success.
 
1. Total Stock Market Risk (Systemic Risk)
This is the risk inherent to the entire market. When major macroeconomic events occur—such as changes in interest rates, geopolitical shifts, or recessions—the entire stock market can move together.
  • How we manage it: Because you cannot "diversify away" total market risk if you own equities, we manage this through asset allocation. By balancing your portfolio with a mix of equities, fixed income, and other non-correlated assets based on your personal risk tolerance, we ensure you are never overly exposed to broad market downturns.
2. Sector Risk
This risk is specific to a particular industry or sector, such as Technology, Healthcare, or Energy. A regulatory change, a supply chain disruption, or a sudden shift in consumer habits can cause an entire sector to decline, even if the rest of the market is doing well.
  • How we manage it: We avoid putting "too many eggs in one basket" by spreading your equity exposure across all major sectors of the economy, ensuring that a downturn in one industry does not drag down your entire portfolio.
3. Individual Stock Risk (Idiosyncratic Risk)
This is the risk associated with owning a single company. Corporate scandals, poor earnings reports, executive departures, or product failures can cause a single stock to plummet overnight—independent of how the broader market or sector is performing.
The recent news about IBM is a textbook example of this. Individual stock risk is exactly why we do not invest in single stocks.
 
The Power of Mathematical Diversification
To see this in action, let's look at the math behind your portfolio.
Instead of buying individual stocks, we utilize broad-market index funds like the SPDR S&P 500 ETF (SPY). IBM makes up only about 0.30% of the SPY. Because we are properly diversified:
  • When IBM lost 36% of its value, the SPY only lost 36% of $0.30—which equals a negligible 0.108%.
What could have been a catastrophic financial blow to an investor holding individual IBM stock became nothing more than minor background noise in a well-diversified Schwab portfolio.
 
Our Commitment to You
Staying properly diversified is the absolute backbone of the Research Financial Strategies success story. It allows us to capture the long-term growth of the global economy while insulating your hard-earned wealth from the volatile swings of individual corporate headlines.
 
We are continuously monitoring the markets and managing these risks so you don't have to. If you have any questions about your portfolio, or if you would like to discuss your current risk profile, please don't hesitate to reach out.
If you found this explanation helpful, please feel free to share this email with a friend or family member who might benefit from seeing how proper diversification protects their wealth.
 
Warm regards,
 
The Research Financial Strategies Team
2273 Research Blvd, Suite 101
Rockville, MD 20850
Office: (301) 294-7500
 
Source: Yahoo Finance

Weekly Market Commentary

The Markets

America's wealth looks different than it did just a couple of generations ago.

A lot has changed since 1989. Back then, there were no smartphones or streaming services. There wasn’t an app for anything. The first digital camera arrived the previous year, and the first handheld global positioning system (GPS) became available in 1989. While technology began reshaping everyday life, another change began unfolding, too.

Between 1989 and 2022, after adjusting for inflation, the wealth held by families in the United States almost quadrupled. It rose from $52 trillion (in 2022 dollars) to $199 trillion, according to data from the Congressional Budget Office (CBO). The composition of that wealth changed, too.

  • Wall Street has become Main Street. More household wealth is invested in stocks than ever before. “Some 34 [percent] of US household wealth is now in stocks — the highest proportion on record,” reported Tracy Alloway and Joe Weisenthal of Bloomberg. “These are obviously aggregate figures, and equity ownership is skewed towards higher-income households. Nevertheless, this is a sea change in the composition of America’s total wealth, which was dominated for years (even after the bursting of the housing bubble in 2008) by real estate.”
  • Retirement plans help grow household wealth. Years ago, a family's wealth was largely tied to its home and, perhaps, a pension that would be paid by a company after retirement. Today, an increasing share of household wealth is in 401(k)s, IRAs, and brokerage accounts. Even people who have never thought of buying an individual stock may own thousands of companies through their workplace retirement plans. “In 2022, retirement assets and accrued Social Security benefits made up about 40 percent of [household] wealth,” reported the CBO.
  • Diversification matters more than ever.With stocks comprising a bigger share of household wealth, managing risk is essential. One of the best ways to do that is through diversification, which means owning different types of investments that respond differently to changing market conditions. The idea is that one asset may increase in value when another is losing value. While diversification does not ensure a profit or protect against loss, it plays an important role in long-term investment strategies.

Last week, the Standard & Poor’s 500 and Nasdaq Composite Indexes finished higher. The Dow Jones Industrial Average lost ground, largely due to the collapse of the U.S.-Iran ceasefire, according to Teresa Rivas of Barron’s. Yields on mid- and longer-term U.S. Treasuries moved higher over the week.

THE WORLD CUP HAS PRODUCED SOME EYE-POPPING NUMBERS, and we’re not talking about the scoreboard. For example:

$713,000. The World Cup trophy is gilded with almost 11 pounds of 18-karat gold. In April of this year, the value of the gold would have been roughly $713,000, reported Phil Haunhorst via Yahoo Finance. The champions receive a gold-plated replica, while the original trophy stays with FIFA, which is the international governing body for soccer.

6 million. That’s how many spectators have packed into stadiums throughout the United States, Canada, and Mexico to watch the beautiful game, according to FIFA.

 $12.5 million. The country of every team playing in the tournament receives $12.5 million in qualification and preparation money, reported Maggie MacKenzie of Sports Illustrated.

$16 million. The U.S. men’s national team won $16 million for making it to the round of 16. Since the U.S. men’s and women’s teams split all World Cup winnings, “The prize money will be split evenly between the 26 men on the U.S. roster and the 26 women who make next year's U.S. roster for the 2027 Women's World Cup, should the Americans qualify,” reported Jeff Kassouf of ESPN.

 33 million. Last week, more than 33 million viewers tuned in to watch the U.S. men’s national team play Belgium, making it the “most-watched soccer telecast in U.S. history,” reported Michael Schneider of Variety.

$50 million. The prize for the team that lifts the World Cup trophy is $50 million. The winnings don’t go to the players, although they receive a share. The award goes to the winning nation’s soccer federation, which is the sport’s governing body in the country.

$13 billion. This is the amount of revenue that “FIFA expects to have generated across the four-year cycle ending with this World Cup,” reported Brett Knight of Forbes. “Of that total, almost $9 billion would be from 2026, including $3.9 billion from broadcasting rights and more than $3 billion in hospitality rights and ticket sales, according to projections in the organization’s 2024 annual report.”

The World Cup offers some unforgettable moments. It also offers some pretty impressive trivia.

WEEKLY FOCUS – THINK ABOUT IT
"We didn’t underestimate them, but they were a lot better than we thought."
 — Bobby Robson, Former professional soccer coach and player

Sources:

https://medium.com/fbdevclagos/tech-timeline-30-years-and-beyond-1987-2017-8beef66255dc

https://en.wikipedia.org/wiki/Digital_camera

https://www.geotab.com/blog/gps-satellites/

https://www.cbo.gov/publication/60807

https://www.bloomberg.com/news/newsletters/2026-07-10/the-stock-market-and-a-phenomena-of-our-lifetimes? or go to https://resources.carsongroup.com/hubfs/WMC-Source/2026/07-13-26-Bloomberg-The-Stock-Market-And%20-%205.pdf

https://www.investopedia.com/investing/importance-diversification/

https://www.barrons.com/market-data?mod=BOL_TOPNAV or go to https://resources.carsongroup.com/hubfs/WMC-Source/2026/07-13-26-Barrons-DJIA-S&P-Nasdaq%20-%207.pdf

https://www.barrons.com/articles/stock-market-magnificent-seven-9a8da693?refsec=the-trader&mod=topics_the-trader or go to https://resources.carsongroup.com/hubfs/WMC-Source/2026/07-13-26-Barrons-The-Stock-Market-Cant-Afford%20-%208.pdf

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2026

https://finance.yahoo.com/markets/commodities/articles/much-gold-hiding-world-cup-111438017.html

https://inside.fifa.com/organisation/media-releases/packed-stadiums-record-digital-reach-world-cup-2026-numbers-unprecedented-scale

https://www.si.com/onsi/athlete-lifestyle/2026-fifa-world-cup-prize-money-full-payout-breakdown-every-team

https://www.espn.com/soccer/story/_/id/49301582/us-men-women-get-equal-split-16m-world-cup-prize

https://variety.com/2026/tv/news/u-s-world-cup-loss-ratings-most-watched-soccer-telecast-1236806132/

https://www.si.com/soccer/how-much-do-world-cup-soccer-players-get-paid-usmnt-england-bonuses-explained

https://www.forbes.com/sites/brettknight/2026/07/01/the-numbers-behind-the-2026-world-cup/ or go to https://resources.carsongroup.com/hubfs/WMC-Source/2026/07-13-26-Forbes-The-Numbers-Behind%20-%2016.pdf

https://www.si.com/soccer/50-inspiring-soccer-quotes

Understanding Market Risks: Why Diversification is Our Backbone

I am reaching out to you today because a few clients recently asked me if IBM’s sharp decline over the last two days (falling -36%) was going to hurt their Schwab portfolios.
It is a great question, and the short answer is: No, your portfolio is well-protected.
To understand why, we have to look at how we build and manage your portfolios. In the world of investing, there are three primary levels of stock market risk. Understanding the differences between them—and how we manage them—is key to achieving long-term, stress-free financial success.
 
1. Total Stock Market Risk (Systemic Risk)
This is the risk inherent to the entire market. When major macroeconomic events occur—such as changes in interest rates, geopolitical shifts, or recessions—the entire stock market can move together.
  • How we manage it: Because you cannot "diversify away" total market risk if you own equities, we manage this through asset allocation. By balancing your portfolio with a mix of equities, fixed income, and other non-correlated assets based on your personal risk tolerance, we ensure you are never overly exposed to broad market downturns.
2. Sector Risk
This risk is specific to a particular industry or sector, such as Technology, Healthcare, or Energy. A regulatory change, a supply chain disruption, or a sudden shift in consumer habits can cause an entire sector to decline, even if the rest of the market is doing well.
  • How we manage it: We avoid putting "too many eggs in one basket" by spreading your equity exposure across all major sectors of the economy, ensuring that a downturn in one industry does not drag down your entire portfolio.
3. Individual Stock Risk (Idiosyncratic Risk)
This is the risk associated with owning a single company. Corporate scandals, poor earnings reports, executive departures, or product failures can cause a single stock to plummet overnight—independent of how the broader market or sector is performing.
The recent news about IBM is a textbook example of this. Individual stock risk is exactly why we do not invest in single stocks.
 
The Power of Mathematical Diversification
To see this in action, let's look at the math behind your portfolio.
Instead of buying individual stocks, we utilize broad-market index funds like the SPDR S&P 500 ETF (SPY). IBM makes up only about 0.30% of the SPY. Because we are properly diversified:
  • When IBM lost 36% of its value, the SPY only lost 36% of $0.30—which equals a negligible 0.108%.
What could have been a catastrophic financial blow to an investor holding individual IBM stock became nothing more than minor background noise in a well-diversified Schwab portfolio.
 
Our Commitment to You
Staying properly diversified is the absolute backbone of the Research Financial Strategies success story. It allows us to capture the long-term growth of the global economy while insulating your hard-earned wealth from the volatile swings of individual corporate headlines.
 
We are continuously monitoring the markets and managing these risks so you don't have to. If you have any questions about your portfolio, or if you would like to discuss your current risk profile, please don't hesitate to reach out.
If you found this explanation helpful, please feel free to share this email with a friend or family member who might benefit from seeing how proper diversification protects their wealth.
 
Warm regards,
 
The Research Financial Strategies Team
2273 Research Blvd, Suite 101
Rockville, MD 20850
Office: (301) 294-7500
 
Source: Yahoo Finance
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