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2025 Was Solid for Investments, Now 2026...

  • Writer: Doug MacGray
    Doug MacGray
  • 4 days ago
  • 4 min read

January 4, 2026


2025 TURNED OUT TO BE A SOLID YEAR FOR STOCKS, BONDS, AND MORE: Stocks ended the year near record highs. The S&P 500 just had its third best three-year run ever. Most thought that streak was coming to a screeching halt back in April. But that dip turned back into a bull market within weeks. Tech continued to be a big driver of the gains with Nvidia up 40%, Broadcom up 51%, Alphabet up 66%, Advanced Micro Devices up 78%, and Palantir up a whopping 139% for the year. From April 8 until the end of the year, the S&P 500 rose 37%, and the Russell 2000 (small cap U.S. stocks) rose 41%. Before you start looking at predictions for 2026, find someone, anyone, who predicted that 2025 would turn out this way.



COMING OUT OF THE GATE: In very light trading, stock indices fizzled slightly to end the year and then rose on the first day of the new trading year (Friday). It was not tech stocks that led the way, but shares of energy, materials, and utility companies. This continues a theme in the recent past where tech stocks and the remaining sectors as well as the small and mid-caps vie for superiority.



LONGER-TERM PERFORMANCE: Below are the annualized three-year and five-year numbers for these same indices.

SOME QUESTIONS ABOUT 2026:

Will affordability improve? Inflation has cooled since the 40-year high in 2022, but the damage was done, and prices remain elevated, and affordability has become a big issue.

Will the Fed cut interest rates?

Will housing become more affordable?

Will the job market pick back up?

Will the earnings of the high flying tech companies keep up with expectations? The current values of these companies need strong earnings all year to support their current prices.

Will the economy remain resilient to geopolitical events?


NEW UNEMPLOYMENT CLAIMS REMAIN LOW: For the week ending December 27, 199,000 new unemployment claims were filed. The four-week moving average increased slightly to 218,750. This general level has held firm for about four years.


STRONG NOVEMBER HOME SALES: According to the National Association of Realtors, pending home sales in November jumped by 3.3% from the prior month and were 2.6% higher than one year prior.


SAYING GOODBYE: What follows is a long list, but not an exhaustive list, of famous people from various walks of life who passed away in 2025. No matter your age (or lack thereof), I bet you know most of the names on this list.


  • Gene Hackman

  • Robert Redford

  • Diane Keaton

  • Rob Reiner

  • Ozzy Osbourne

  • Brian Wilson

  • Roberta Flack

  • Pope Francis

  • Jane Goodall

  • George Foreman

  • Loni Anderson

  • Brigitte Bardot

  • George Wendt

  • Hulk Hogan

  • Ruth Buzzi

  • Richard Chamberlain

  • Dick Cheney

  • Jimmy Cliff

  • Connie Francis

  • Val Kilmer

  • Charlie Kirk

  • Chuck Mangione

  • Phil Robertson

  • Bobby Sherman

  • Loretta Swit

  • Bob Uecker

  • Malcolm-Jamal Warner


WELCOME JAKE!: In the fourth quarter of 2025, Stonecrop added another team member, new advisor Jake DiLaura! We are thrilled to welcome Jake to the team. He has already positively added to the culture with his energy and passion for the mission of Stonecrop. Jake holds dual degrees in Finance and Economics from West Chester University and has completed Level 1 of the CFA program. He has prior experience with the FDIC and SEI Investments. Welcome Jake!

RINGING IN THE NEW YEAR: Yes, I stayed up all the way until midnight, and then some. Deb and I spent the evening with a bit over a dozen friends. This is me playing that game where you describe a person, place or thing with as many words as you want in round one, charades in round two, and one word in round three. The girl team beat the boy team, but barely.

From all of us here at Stonecrop, we want to wish you a prosperous (in every way) 2026!


Have a great week!



Our purpose is to honor God by helping our clients see the objective, find the path, and navigate past the obstacles to a more prosperous future.




Douglas R. MacGray, J.D., C.F.P. ®

President

Stonecrop Wealth Advisors, LLC

Direct | Cell | Fax

(610) 628 4545

dmacgray@stonecropadvisors.com "Leadership is not only having a vision, but also having the courage, the discipline, and the resources to get you there." George Washington


"Good will come to those who are generous and lend freely, who conduct their affairs with justice." Psalm 112:5 (NIV)


SOURCES:

NEW UNEMPLOYMENT CLAIMS REMAIN LOW: https://www.dol.gov/ui/data.pdf


(c) 2026 Anno Domini, Stonecrop Wealth Advisors, LLC, All Rights Reserved

Investment advisory services offered through Stonecrop Wealth Advisors, LLC, a Registered Investment Advisor with the U.S. Securities and Exchange Commission.


SDG

*S&P 500: This is a measure of the performance of the 500 largest companies in the United States, and it a common index to track the performance of U.S. equity markets, especially the large cap markets.

*MSCI All Country World Index X US: This is a broad measure of the performance of worldwide equity markets excluding the United States.

*Bloomberg U.S. Aggregate: This is a measure of the U.S. bond markets.

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