Week Ending August 28, 2026
RECAP: Ignoring Politics When Investing
We are now entering Midterm Election territory. And as a primer for what this means for our clients, and for investors in general, we believe it is healthy to review one of our favorite charts regarding Politics and Investing.
The data shows that the performance of the S&P 500 does not align consistently with political party control. Whether under Democratic or Republican administrations, market growth has occurred in both contexts.
Think Long-Term: While short-term market fluctuations can be influenced by political events or changes, long-term performance tends to smooth out these effects. Investors should focus on their long-term goals rather than reacting to the political climate, as historical data shows that the S&P 500 has experienced growth under both parties over extended periods.
Investing Implications: When zooming out on the long-term growth, historically, of the S&P 500, politics look more like a distraction vs. a signal.
Sticky Inflation Report Raises Jackson Hole Stakes for Fed’s Warsh
Bill Gates warns ‘there is no plan’ for AI transition
Warsh’s “Quiet Fed” Approach Adds a Hawkish Call at Jackson Hole
Trump Announces ‘Biggest Oil Deal in World History’
Can you put an IRA in a trust?
Naming a trust as your IRA beneficiary can offer added control—but comes with important tax considerations.
Key Takeaways:
- An IRA can’t be owned by a trust while you’re alive, but you can name a trust as the IRA beneficiary to direct how assets are managed and distributed after your death.
- Naming a trust as an IRA beneficiary can create tax and distribution complexities, including potentially accelerated withdrawals and higher tax rates.
- Because the tax consequences can be significant, it’s important to consult with both an estate-planning attorney and a tax professional before changing your IRA beneficiary designations.
Markets have a full docket to digest in this last, unofficial week of summer. August nonfarm payrolls arrive Friday, with consensus looking for a roughly 55,000 increase in jobs and a steady 4.1% unemployment rate. The week also brings a slate of manufacturing sentiment and activity data, the Fed’s Beige Book, speeches from Fed officials Waller, Hammack, and Barr, and earnings from semiconductor giant Broadcom (AVGO) — all of which have the potential to move markets already navigating a shifting internal backdrop.
That backdrop has grown more mixed after a strong start to August: the S&P 500 has traded sideways-to-down for the balance of the month, and breadth has faded, with the share of index members above their 50-day moving average slipping from roughly 70% at the end of July to about 53% currently. Even standout results and an outsized revenue guide from Nvidia (NVDA) have not been enough to keep the broader semiconductor complex, or higher-beta, small-cap, and industrial names, trading firmly.
Looking ahead, seasonal patterns have historically brought higher volatility and softer returns to September, and with second-quarter earnings season now behind the market, NewEdge notes the index may become more susceptible to that typical seasonal chop. Resilient economic growth and strong earnings growth have so far allowed the S&P 500 to absorb other headwinds, including a more hawkish Fed and sticky inflation tied to higher commodity prices, but that support may be tested as the calendar turns.
(as of Monday’s Market Opening)
| Total Return (1D) | Total Return (1W) | Total Return (MTD) | Total Return (QTD) | Total Return (YTD) | |
| S&P 500 | -0.51% | 0.26% | 2.44% | 2.31% | 12.08% |
| Dow Jones Industrial Average | -0.71% | -0.44% | 1.33% | 1.65% | 10.65% |
| NASDAQ | -0.49% | 1.13% | 3.54% | 0.23% | 13.04% |
| NASDAQ 100 | -0.67% | 0.73% | 3.40% | -3.44% | 15.78% |
| Russell 1000 | -0.50% | -0.15% | 2.61% | 2.33% | 12.71% |
| Russell 2000 | -0.80% | -2.19% | 0.75% | -2.35% | 19.68% |
| Russell 3000 | -0.47% | -0.24% | 2.49% | 2.12% | 13.04% |
| ACWI | -0.30% | -0.13% | 2.67% | 2.31% | 14.24% |
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- Wealth Mechanics™ is a registered trademark of Cestia Wealth Management. Unauthorized use of the trademark, including but not limited to commercial use, reproduction, or imitation without explicit written permission from Cestia Wealth Management, is strictly prohibited.
- Market commentary provided by NewEdge Advisors
- Charts concerning market data are provided by Exhibit A.
- Guides and other downloadable firm material respective to financial planning processes and data are provided and powered by fpPathfinder.
- Advisory services offered through NewEdge Advisors, LLC, a registered investment adviser. Securities offered through NewEdge Securities, LLC. Member FINRA/SIPC. NewEdge Advisors, LLC and NewEdge Securities, LLC are wholly owned subsidiaries of NewEdge Capital Group, LLC.
- Cestia Wealth Management is not a legal tax professional. We offer tax gap analysis for clients who desire to have a comprehensive financial plan, which requires in-depth tax strategy and planning as a distinct part of the overall customized solution. Please consult your tax professional on all matters addressed in this report.
- Information about annuities are not to be considered a recommendation. The information provided should not considered a recommendation to purchase or sell any particular security.
- Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.
