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CLA OUTLOOK

Key Insights for Sound Financial Strategies

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APRIL 20 WEEKLY INSIGHTS
S &P 500 breaks above 7,000, notches new all-time high
  • Both the S&P 500 and the Nasdaq 100 reached new all-time highs last week.   
  • The swift V shaped recovery reinforces the idea that time in the market matters more than timing the market.
  • These gains represent the first record highs since the recent U.S.–Iran conflict, pointing to a rebound in investor risk appetite. 
  • Market strength has been supported by resilient earnings expectations and growing confidence geopolitical risks may de escalate rather than intensify. (Source: Morningstar)
Muni-treasury ratio highlights relative value in tax-exempt bonds
  • Comparing municipal bonds with treasuries of the same maturity provides a useful relative value framework that is currently signaling improving opportunities. 
  • At the front end of the curve, 2-, 5-, and 10-year muni-to-treasury yield ratios stand at 60%, 61%, and 67%, respectively. 
  • The long end remains the most attractive segment, with the 30-year muni-treasury ratio at 92%. 
  • As the market works through the seasonally heavy March–April issuance period, recent yield and ratio repricing has reset municipal valuations to more compelling levels. (Source: Columbia Threadneedle)
March CPI reflects energy pressure, not broad inflation reacceleration
  • Core CPI, which excludes food and energy, rose 2.6% year over year in March, pointing to relatively contained underlying inflationary pressures.
  • The divergence between headline and core inflation indicates March’s increase was driven primarily by higher energy prices, rather than a renewed acceleration in underlying inflation.
  • Continued moderation in core inflation strengthens the case for additional Federal Reserve rate cuts later this year, assuming incoming data remain consistent with this trend. (Source: U.S. Bureau of Labor Statistics)

Develop strong financial strategies

Tune in to the CLA Outlook for 2026 as we discuss timely topics around policy, the economy, and market performance.
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Strategic Opportunities

The Big Picture for 2026

The CLA Outlook signals a turning point: stabilized inflation, growth above trend, and easing interest rates. Explore the key forces influencing portfolios in the year ahead.

  • Economic outlook

    Growth is back on the horizon after three years of higher interest rates and restrictive Federal Reserve policies, with AI helping to transform industries.

  • Fiscal policy

    The rising U.S. deficit remains a key concern as government spending continues to outpace revenues — watch for this to be a focal point heading into midterm elections.

  • Fixed income outlook

    Lower interest rates should be a tailwind to bonds in 2026, though consider credit quality and duration when building high-quality income portfolios.

  • Equity outlook

    Despite elevated stock valuations, led by tech-dominant Magnificent-7 stocks, equities remain compelling because of strong earnings growth and a robust economic backdrop.

  • Alternatives outlook

    Lower interest rates favor private equity and private real estate, while private credit can warrant caution. Manager selection and due diligence remain critical.

  • We can help

    No matter your financial position, incorporating sound tax and wealth advisory could help you achieve more.

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