Published on February 24, 2026

February Monthly Portfolio Pulse - Running it Hot

02-24-2026. The U.S. economy is gaining momentum into 2026, with strengthening manufacturing, services, jobs, housing, and consumer spending supporting a tactical shift toward growth‑sensitive equities—Small/Mid Cap, Emerging Markets, and International Developed—funded by reduced fixed income exposure.

Written by Dan Phillips, CFA®

The U.S. economy looks set to heat things up in 2026 – driven by recent economic data momentum (the kindling) and pro-growth initiatives (the potential gas), which are set to ignite heading into the 2026 midterm elections. January manufacturing activity jumped to its highest level since late-2022, joining continued strength in the services sector. The labor market welcomed a strong January jobs report – just as record tax refunds hit consumer bank accounts – while the housing market is seeing green shoots in the form of rising building permits. We recommend tactically increasing equities in areas that are most exposed to economic growth – Small/Mid Cap, Emerging Markets and International Developed – funded by further reductions in Fixed Income.

Click to read: February Monthly Portfolio Pulse: Running it Hot