Co-Founders' Monthly Note For Financial Advisors

July 2026:

How to Navigate the Space Between Evidence & Uncertainty

Certainty has a way of sometimes working against investors in both directions.

When markets are falling, it shows up as conviction that losses will continue. When markets are rising, it can reappear as confidence that gains have gone too far, that a correction is overdue, or that strength itself is a warning sign.

June offered a useful illustration. Equity markets softened during the month, but the broader second quarter remained exceptionally strong. That combination tends to produce discomfort. The data points to a constructive market environment, while instinct often argues for caution.

This month’s Co-Founders’ Note examines previous periods of unusually strong quarterly equity returns, what tended to happen afterward, and why strong markets have often deserved more respect than investors are inclined to give them. It also explores why a systematic investing process can help with navigating the space between evidence and uncertainty.

But first, here’s a summary of what transpired in the markets in June.