September 11, 2026
August is often associated with thinner trading, softer market performance, and increased volatility. This year looked different.
U.S. equity funds gained ground during the month even as Treasury yields moved higher, oil prices remained elevated, and geopolitical concerns continued to shape investor sentiment. Technology stocks rebounded, value stocks maintained strong year-to-date performance, and several international markets continued to outperform U.S. equities.
For Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, the more important signal was not the calendar or the headlines. It was the continued strength of corporate earnings.
“We would ignore geopolitical and human-made noise and continue to focus attention on the corporate earnings growth picture, which is what ultimately drives stocks higher.”
The message is straightforward: seasonal patterns can influence sentiment, but earnings remain a more meaningful foundation for evaluating the market.
The S&P 500 reached another high during August as second-quarter earnings continued to provide support.
That matters because market advances backed by rising profits are different from rallies driven primarily by enthusiasm, speculation, or changing expectations for interest rates.
Strong earnings do not eliminate risk. Valuations can still become stretched, bond yields can rise, and unexpected geopolitical events can affect markets quickly.
But when companies continue producing revenue and earnings growth, investors have a fundamental reason to remain engaged.
Michael’s comments suggest that the more useful question is not whether August was unusually strong.
It is whether businesses can continue producing the earnings growth that helped make it strong.
August also demonstrated that the market is no longer being driven by one simple style or investment theme.
Technology funds rebounded sharply during the month, helped by renewed enthusiasm around artificial intelligence. At the same time, value strategies remain ahead of growth strategies across several market-cap categories for the year.
Small-cap value has also produced strong gains, while international and emerging markets have continued to outperform many U.S. counterparts.
This creates an environment where investors may need to look beyond a single definition of market leadership.
AI remains influential, but so do value, cash-flow strength, health care, materials, smaller companies, and international markets.
That broader participation may give investors more choices, but it also places greater importance on understanding where earnings are actually improving.
Artificial intelligence remains one of the strongest investment themes of 2026.
Technology and AI-focused funds continued to perform well in August, while semiconductor, memory, infrastructure, and cybersecurity businesses benefited from continued investment in the AI buildout.
But strong performance in one theme does not mean portfolios need to depend entirely on it.
The broader market data suggest that earnings opportunities are appearing in several areas outside mega-cap technology companies.
For investors, the challenge is separating companies benefiting from genuine earnings growth from those moving primarily because they are associated with a popular theme.
The stronger the earnings contribution, the more durable the investment case may be.
International markets continued to play a larger role in portfolio performance during August.
World equity funds outperformed the average U.S. diversified equity fund for the year, while emerging markets posted particularly strong gains.
Japan, other parts of Asia, and several emerging economies have also contributed to the broader global opportunity set.
This reinforces a theme Michael has discussed in other recent interviews: investors do not necessarily need to abandon U.S. equities, but relying too heavily on domestic large-cap stocks can limit exposure to earnings growth developing elsewhere.
International diversification can therefore serve two purposes.
It can introduce different sources of growth while reducing the degree to which a portfolio depends on the same U.S. companies, sectors, and economic conditions.
While stocks advanced, fixed-income funds continued to face pressure from elevated yields.
Persistent inflation concerns, rising government borrowing, and growing demand for capital have kept longer-term interest rates relatively high.
That creates an important contrast.
Equities can continue performing well when earnings growth is strong enough to offset some of the pressure from higher rates. Bonds, however, can struggle when yields continue moving upward.
This relationship also raises the hurdle for stocks.
When government securities offer more attractive yields, companies need to produce sufficient earnings growth to justify the additional risk investors accept by owning equities.
That makes Michael’s focus on the bottom line even more relevant.
August’s performance is a reminder that seasonal tendencies are tendencies, not investment rules.
A historically weaker period can still produce strong returns when earnings, economic growth, and investor demand remain supportive.
Likewise, a traditionally strong period can disappoint when fundamentals deteriorate.
Investors may therefore be better served by focusing on measurable business performance rather than trying to position portfolios around the calendar.
The relevant questions remain familiar:
Are earnings growing?
Are valuations supported by that growth?
Is market leadership becoming broader or narrower?
And are portfolios diversified across different sources of return?
We believe August offered a useful reminder that markets do not have to follow historical seasonal patterns.
Rising yields, elevated oil prices, and geopolitical uncertainty created reasons for caution, yet corporate earnings remained strong enough to support equities.
That does not mean those risks should be ignored. It means they should be evaluated in the context of whether they are materially changing the earnings outlook.
We continue to focus on companies and markets where earnings growth, balance-sheet strength, and long-term economic drivers remain supportive. We also believe broader participation across value, international markets, smaller companies, and selected technology themes can create opportunities beyond well-known market names.
The calendar may influence sentiment, but earnings remain the factor that can give a market rally staying power.
Source: U.S. Stock Funds Rebound In August And Snub Bond Market Warning
Landsberg Bennett is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.
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