Experts Unplugged: What You Missed
Kelly: Hello everyone, and welcome to this week’s Biweekly. I’m Kelly Heppe, joined as always by Tom and Alex.
We kicked off our Experts Unplugged series with Max Mann from Specialized Asset Management. Max shared helpful insights on key lessons from last year and what he’s watching as we head into 2026.
He reminded us how easy it is to forget what the market felt like in 2025. In the first quarter, the S&P 500 dropped almost -19% before snapping back in a fast V shaped rebound—so quickly that many investors barely remember how uncomfortable that decline was.
But swings like that are normal. Historically, the market sees at least one meaningful pullback each year, averaging about 14%. Keeping that perspective helps investors stay grounded. Short term volatility is part of the ride, and long term discipline is what typically drives real results. Alex?
Alex: One thing that stood out from our conversation with Max was the idea that we’re in a global bull market—something that almost feels taboo to say out loud. Over the last year, and especially heading into this one, there’s been a clear gap between how people feel about the economy and what the earnings data actually shows. Broadly speaking, businesses are doing well.
That disconnect makes it hard for all of us to separate day to day emotions from long term goals. It may not sound exciting, but owning quality companies that continue to grow remains one of the most effective ways to reach those goals. It was reassuring to hear—and to see firsthand—how the SAM team continues to stick to that discipline.
Tom, what stood out to you?
Tom: Thanks, Alex! Despite all the uncertainty, there are still plenty of reasons to feel optimistic about 2026. As you mentioned, we’re seeing a real divergence between Main Street and Wall Street sentiment. Historically, that kind of setup has often allowed markets to climb what’s known as the “wall of worry.”
We’re also seeing continued signs of easing from the Federal Reserve, which is typically a supportive backdrop for stocks. On top of that, there’s meaningful economic stimulus built into recent tax legislation, and much of that impact is beginning to show up this year.
And let’s not forget some major tailwinds: the economic boost from the World Cup this summer and the country’s 250th anniversary celebrations—both expected to drive spending and activity.
So, stay tuned, 2026 is shaping up to be a very interesting year.
As always, thank you for your trust and confidence. Until next time, take care
EXPERTS UNPLUGGED REPLAY AVAILABLE
Head to our website to access the full replay of our presentation.
2025 Tax Season
And so it begins! The new year kicks off the 2025 tax reporting season, and we’re here to make the process as smooth as possible. As always, we’ll keep you informed as your documents become available.
Below is the Baird Tax Document Mailing Schedule to help you plan ahead:
