BNA Market Perspective: November 2026

The Election and your Portfolio

Midterm elections are dominating the news and while the coverage may make the outcome feel important for markets, election results have not historically been a meaningful driver of market performance. Over time, markets are driven by earnings, inflation and interest rates, not by which party holds a majority. Whatever the results, our advice is the same: stay invested and tune out the noise.

Inflation, Rates and Bonds

Inflation picked up this fall, driven mainly by higher gas prices. The Federal Reserve raised short-term rates in September and held them steady at its October 28 meeting. Rising inflation and expectations of further rate hikes pushed bond yields higher, and because bond prices fall when yields rise, bonds had a tough stretch. The broad bond market lost about 2.6% in September, and the 10-year Treasury yield climbed above 5% in early October. The good news is that much of this adjustment appears to be behind us. With yields now around 5%, bonds pay meaningfully more income, which provides a cushion against future rate moves.

Stocks

Strong earnings have driven the stock market higher in 2026, but October brought a notable rotation among sectors. Technology and AI-related stocks pulled back, while energy and health care led the way. It’s a good reminder of the value of diversification, especially as the benefits of AI spread more broadly across the economy. We expect some continued choppiness in the near term, but we remain optimistic about economic growth and the long-term outlook for markets.

The views expressed are those of BNA Wealth as of October 31, 2026 and are subject to change without notice. This commentary is for informational purposes only and is not a recommendation to buy or sell any security or a substitute for individualized advice. Forward-looking statements are based on current expectations, are not guarantees of future results, and actual outcomes may differ materially. Past performance is not a guarantee of future results. All investing involves risk, including possible loss of principal. Bond values fall when interest rates rise, and bonds are subject to credit and inflation risk. Diversification does not ensure a profit or protect against loss in a declining market. Index returns are shown for illustration only, do not reflect fees or expenses, and you cannot invest directly in an index. Market data sourced from Bloomberg / U.S. Treasury / Bureau of Labor Statistics / Federal Reserve. Information from third-party sources is believed to be reliable but is not guaranteed.

Advisory services are offered through BNA Wealth Inc., an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.

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