Brave Markets, Narrow Roads

Monthly Market and Economic Update – June 2026

Peter Flannery  Financial Adviser CFP

“People calculate too much and think too little.”

Charlie Munger

Key Points: 

  • The S&P 500’s top 10 holdings drive the bulk of returns whilst the broader 490 stocks contribute just 2.32%; earnings beat rates at 85% are historically high but concentrated in tech.
  • Q1 earnings growth (28.6%) nearly doubled analyst expectations, but trading prices already embed substantial future success—the shift is from AI optimism to earnings delivery.
  • The real opportunity lies in broadening earnings growth beyond mega-cap technology toward quality cash-generative businesses with credible capital allocation and reasonable valuations.
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