December Market Recap
Stocks ended December flat, as economic data provided no pleasant surprises while the Fed indicated more interest-rate cuts were not unanimous.
So how did the holiday season turn out? This year US consumers, once again, were happy to open their wallets, with retail spending up 4.2% compared to last year.1 Many shopping malls and centers were visibly crowded.
For the first time since the global financial crisis, precious metals had a red-hot year. Gold was up 63% while silver skyrocketed 145%! Precious metals act as safe-haven assets and tend to shine during times of high inflation, geopolitical instability, increased government debt, and loss of confidence in fiat currencies.2 Long-term investors should consider these factors when constructing their portfolio.
2025 Wall Street Report Cards and 2026 Forecasts
What should we expect in 2026? Here are some predictions from Wall Street firms.3 If we’ve learned anything from the past, it’s that these estimates should be taken with a grain of salt and investors ought to do their own homework and be prepared to encounter volatility.
After three consecutive years of stellar returns, is it reasonable to lower expectations for 2026? Some factors that will be crucial to the market’s success this year include:
- AI spending does not slow down and investor patience holds firm.
- Economic growth and the labor market remain solid and healthy.
- Fed rate cuts depend on the new Chair.
- Trump tariffs will have a clear future once the Supreme Court decides.
Key Planning Numbers for 2026
Many gift tax and estate exclusion limits increase in 2026! These numbers will help you with your gifting and estate planning:
- Annual gift-tax exclusion: $19,000 per recipient (direct payments to medical and educational institutions are exempt)
- Lifetime gift and estate tax exemption: $15 million per person ($30 million per married couple)
Retirement plan contribution limits are also higher.
| ACCOUNT TYPE | UNDER 50 | 50 AND UP | AGE 60 TO 63 |
|---|---|---|---|
| IRA | $7,500 | $8,600 | same as 50 and up |
| 401(k)/403(b)/457 | $24,500 | $32,500 | $43,750 |
| SIMPLE IRA | $17,000 | $21,000 | $22,250 |
Note the “additional” catch-up amounts available to people who are 60, 61, 62 and 63 and have a 401(k) or SIMPLE IRA. These amounts were first introduced in 2025. New in 2026, 401(k) participants who are 50 and older and make more than $150,000 in compensation can only make catch-up contributions into their Roth 401(k) accounts.
Staying with retirement accounts, the maximum amount of qualified charitable distributions (QCDs) from IRA is $111,000. IRA owners can take advantage of QCDs once they reach 70 ½ (not your required minimum distribution age).
What Are Trump Accounts?
There’s no doubt that we love our children, and setting them on the path to a bright future is many parents’ number one goal! From 529 Plans to complex educational trusts, we go great lengths to provide for our kids.
Later this year, a new type of investment account will be available exclusively to children under the age of 18. Created under IRC Section code 530A, Trump Accounts are essentially individual retirement accounts (IRAs) for these young children but have 529-like tax savings.
| TRUMP ACCOUNTS | |
|---|---|
| ELIGIBILITY | • Any US child under 18. • Social Security Number required. |
| CONTRIBUTIONS | • Up to $5,000 annually • Children born between 2025 and 2028 to receive a one-time contribution of $1,000 from Treasury. • Private (corporations and philanthropists) contributions allowed. |
| INVESTMENTS | • Low-cost, passive funds that track a US stock index. |
| WITHDRAWALS | • Child must reach 18. • Taxable without penalty on qualified expenses. |
Treasury will release more guidelines and details as we approach the official launch date in July. Stay tuned and we will provide an update!
