This may sound like a broken record, for those who remember what a broken record sounds like, but after the “Tariff Tantrum” of Q1 we have seen almost nothing except market strength into the end of Q3. The primary impetus has been a sound economy, strong earnings, secular enthusiasm for AI and a “dovish” Fed that appears to be on an easing path to head off potential employment troubles. International and emerging market equities continued with muted positive returns while fixed income was mostly tame as a stable cushion, geopolitics notwithstanding.
Per the chart below, small cap equities once again regained their spotty glamour with a quarter-leading return of +10.6%, but if it is anything like previous quarters, its luster may be short-lived in the face of the competitive attractiveness of the mega-cap tech sector.
It was a busy quarter with blog posts highlighting some notable market dynamics. For example, the continuation of almost daily new all-time market highs prompted some deep thought on how to proceed. From my August 23 blog post, All-Time Highs, What Now??, I pondered,
And while today’s headlines celebrate new market highs, true financial success comes from discipline, purpose, and perspective. A liquidity event is both an opportunity and a responsibility—and with the right plan, it can become the foundation for security, generosity, and peace of mind.
Likewise, during my travels this quarter I ruminated over the different “stories” that we all have as we continue our journeys. From my July 24 blog post, Everyone Has a Story - What's Yours?, I recounted the D&A investment philosophy,
Everyone’s journey is different—but with the right plan, you can enjoy the ride. Whether you're flying to Paris or planning for the decades ahead, the key is having a strategy that fits your story. At Dattilio & Ash, we’re here to help you build that strategy—bucket by bucket, step by step.
What this means for portfolios:
Stay balanced and cautious: respect the AI-driven secular growth leadership, but don’t overconcentrate.
In fixed income: keep a quality bias and barbell duration to cushion rate path uncertainty.
Remain true to your strategy to achieve your goals, but be flexible when needed.