Weekly Compass | 10.30.26

Currents and Conditions

Good morning, everyone. It was a busy week. The Federal Reserve held interest rates steady on Wednesday, and on Thursday we learned the economy grew at a healthy 3.4% annual pace in the third quarter, ahead of expectations. Stocks rose three days in a row before a Thursday dip, when the S&P 500 slipped 0.3% to 7,720 and the Nasdaq fell 1.4%. Even so, the S&P 500 is still up nearly 13% for the year, and the 10-year Treasury yield eased back just under 5%.

The Winds of the Week

• A pause, not a pivot: The Fed kept its benchmark rate at 3.75% to 4%, though two officials voted for another increase and markets see a possible hike in December. Rates look likely to stay elevated for a while, which keeps income opportunities attractive.
• Big tech had a split week: Alphabet fell about 12% Thursday after its heavy spending outpaced the cash it brought in, and Amazon and Intel slid after hours, so today may open choppy. Yet roughly four out of five stocks in the S&P 500 rose on Thursday. The rest of the market is pulling its weight.
• Solid growth: Third quarter GDP accelerated from 2.2% in the spring, powered by business investment and consumer spending.

Perspectives

Clocks fall back an hour this Sunday, a good reminder that only two months remain in 2026, and several of the most valuable planning moves come with a December 31 deadline.

Take tax-loss harvesting. Say you sold an investment earlier this year for a $20,000 gain, and another holding is sitting at a $12,000 loss. Selling the loser and moving into a similar, but not identical, investment can offset $12,000 of that gain while keeping your money invested. At a 15% long-term capital gains rate, that is $1,800 in tax savings.

The same calendar applies to Roth conversions, charitable gifts, and required minimum distributions for those 73 and older. None of these require a crystal ball, just a little planning before the year closes. We would much rather have these conversations in November than in late December.

Quote of the Week

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”

Paul Samuelson, Nobel Prize-winning economist

Charting the Course

Daylight saving time ends Sunday, Election Day is Tuesday, and the October jobs report arrives next Friday. Our approach is not changing: stay diversified, keep near-term cash needs set aside, and use today’s yields to lock in income where it fits. If you would like to review your year-end moves, give either of us a call. And if you know someone who could use a steady hand, we would be honored if you passed this along.

Between the Tides of Our Local Community

Here is a bit of Jacksonville trivia for the weekend. The Florida-Georgia game has been played here every year since 1933, with only three exceptions: 1943, 1993, and 1994, when the stadium was rebuilt for the arrival of the Jaguars. This Saturday the rivalry heads to Atlanta for the first time in series history while EverBank Stadium is renovated, then to Tampa next year before returning home in 2028. If you are staying in town, the Jacksonville Zoo’s Spooktacular and the Beaches Green Market at Penman Park make for a fine Halloween Saturday.

Have a wonderful weekend.

TradeWinds Wealth Partners is a trade name of Elevation Point Wealth Partners, LLC. This newsletter is provided for informational purposes only and should not be considered a recommendation to buy or sell any security or as tax or legal advice. Examples are hypothetical and for illustration only. Past performance does not guarantee future results. Index figures do not reflect fees or expenses, and you cannot invest directly in an index. Please consult with us regarding your individual situation.