Published on July 13, 2026

July Monthly Portfolio Pulse - Fundamental Focus

The equity rally has paused after strong Q2 gains, but continued economic growth and solid fundamentals support a positive outlook for equities, with a continued preference for U.S. and emerging markets despite near-term volatility.

Written by Dan Phillips, CFA

July Monthly Portfolio Pulse - Fundamental Focus

The equity-market rally has stopped to catch its breath. Over the past month, global equities are basically flat, U.S. Large Cap and Small/Mid Cap are up a bit, International Developed is down a bit and Emerging Markets is down a bit more. Investors are digesting the strong Q2 equity-market gains in the context of elevated inflation and the potential for tighter monetary policy, which is causing (and may continue to cause) modest near-term volatility. But the underlying fundamentals remain supportive of an ongoing bull market, driven primarily by continuing and broadening economic growth – a dynamic we expect will remain on full display as we are entering Q2 earnings season. We continue to recommend a tactical overweight to equities, specifically in the U.S. and emerging-market regions.

Click to read: July Monthly Portfolio Pulse - Fundamental Focus