As we move through the final quarter of 2026, investors have plenty to keep an eye on. Between the midterm elections, shifting interest rates, inflation, and continued investment in artificial intelligence, there is certainly no shortage of headlines influencing the markets.
At Victory Wealth Partners, we believe it’s important to look beyond the daily news and focus on what the underlying data is telling us. Our investment philosophy is built around a disciplined, rules-based approach that evaluates market trends, relative strength, and momentum rather than relying on predictions or political outcomes.
What’s Driving the Markets?
Several key themes continue to influence investor sentiment:
Artificial Intelligence and Corporate Spending
Artificial intelligence remains a major driver of economic activity and corporate investment. While significant spending on AI infrastructure has put pressure on cash flow and increased borrowing for some large technology companies, it has also contributed to economic growth and corporate earnings.
The important distinction for investors is that the benefits of AI may extend well beyond the technology companies building the infrastructure. Businesses across multiple industries are finding ways to use AI to improve productivity and efficiency, potentially creating opportunities in other areas of the market.
Interest Rates and Inflation
Interest rates remain an important consideration for both investors and consumers. Although borrowing costs are higher than many became accustomed to over the past decade, rates should also be viewed in a broader historical context.
Inflation, Federal Reserve policy, and Treasury yields will continue to influence the direction of both stock and bond markets. Rather than attempting to predict the Fed’s next move, we believe investors should monitor how markets respond to changing conditions.
Midterm Elections and Market Volatility
Election years often bring heightened uncertainty, and the 2026 midterms have been no exception. Historically, markets have frequently performed well in the year following midterm elections, although past results are never a guarantee of future performance.
At Victory, we do not believe investment decisions should be driven by which political party controls Washington. Markets ultimately respond to economic conditions, corporate earnings, interest rates, and investor demand. Our focus remains on identifying where strength is developing rather than reacting to election headlines.
A Broadening Market
One of the more interesting developments recently has been the shift in market leadership.
While some of the largest technology and AI-related companies experienced weakness in October, other sectors demonstrated strength. Value stocks outperformed growth stocks, smaller companies showed resilience, and bonds also delivered positive returns.
This is an important reminder that the stock market is not one single investment. Different sectors, industries, and asset classes can perform very differently, even during the same month.
Corporate earnings have also shown signs of broadening beyond the largest technology companies. A healthy economy and earnings growth across multiple industries can provide additional support for the overall market.
For investors, understanding these shifts is especially important. A portfolio that performed well during one market environment may need adjustments as leadership changes.
The Victory Approach: Following Strength, Not Headlines
At Victory Wealth Partners, we believe successful investment management requires more than simply buying investments and hoping they perform well over time.
Our investment process uses objective data, relative strength analysis, and momentum indicators to evaluate opportunities and identify changes in market leadership.
Rather than assuming yesterday’s winners will remain tomorrow’s leaders, we continually evaluate where strength is emerging and where trends may be weakening.
This does not mean attempting to predict every market movement. It means having a disciplined process for making decisions as conditions change.
Diversification remains important, but we also recognize that market leadership is constantly evolving. Our tactical approach allows us to evaluate portfolio positioning as new information becomes available, while remaining mindful of each client’s objectives and risk tolerance.
Looking Ahead
As we approach year-end, investors should continue watching corporate earnings, inflation trends, Federal Reserve policy, and the ongoing evolution of market leadership.
We believe opportunities can develop across different sectors and asset classes, but identifying those opportunities requires discipline and a willingness to adapt.
Our message is simple: Don’t let headlines dictate your financial future.
At Victory Wealth Partners, our role as an independent fiduciary is to put our clients’ interests first while applying a consistent, research-driven investment process. We believe in making decisions based on evidence, not emotion, and adjusting when the data suggests conditions are changing.
As always, if you have questions about the markets, your investments, or whether your current strategy is still aligned with your goals, I welcome the opportunity to connect.
Wishing you and your family a wonderful holiday season and a strong finish to 2026!
Ashley Rosser, President
Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.
Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.
