Published on August 18, 2026

August Monthly Portfolio Pulse - The Show-Me Market

Strong Q2 earnings growth and a moderating economic backdrop continue to support equities, with solid fundamentals and a likely Fed pause helping stocks remain positioned for further gains despite approaching midterm election uncertainty.

Written by Dan Phillips, CFA

August Monthly Portfolio Pulse - The Show-Me Market

Last month we advised Fundamental Focus. The fundamentals delivered. With earnings season nearly complete, Q2 S&P 500 year-over-year earnings growth sits at an astounding 51%. Even when removing some one-time items (Alphabet and Amazon capital gains on updated SpaceX and Anthropic valuations, respectively) the growth number is 32% – outpacing expectations and representing further acceleration from last quarter’s 29% result. Further, recent economic data – including jobs, inflation and retail sales – suggests some moderation of a macro backdrop at risk of overheating, allowing the Fed to leave rates alone at their September 15-16 meeting. The Midterms loom on the horizon – but, for now, we believe (fundamentally supported) stocks will continue to bask in the late-summer sun.

Click to read: August Monthly Portfolio Pulse - The Show-Me Market