September 18, 2026
Markets ended the week with several competing forces in play. Oil prices remained elevated as the conflict with Iran continued, Treasury yields approached levels not seen in years, and the Federal Reserve delivered another 25-basis-point rate increase.
For Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, the challenge is separating those developments from the underlying fundamentals supporting the market.
During a recent appearance on Opening Bell, Michael pointed to corporate earnings as one of the strongest parts of the current environment.
“Corporate earnings were great. We could focus on that. It was very positive.”
He noted that companies have now produced seven consecutive quarters of double-digit earnings growth, with the most recent quarter among the strongest of the period.
That provides a foundation for the market even as investors contend with higher oil prices, elevated rates, and geopolitical uncertainty.
Michael expressed concern about the reason behind the Federal Reserve’s latest rate increase.
Inflation has been moving higher partly because of rising energy prices connected to the conflict with Iran. Unlike inflation generated by strong wage growth or unusually strong domestic demand, higher oil prices are not something interest-rate policy can directly fix.
That creates a difficult situation for policymakers.
“The fear is, what if we have a weak first quarter and you’ve raised rates into that?”
Michael believes the economy is currently strong enough to absorb higher rates. GDP has remained supportive, unemployment is low, and corporate earnings have been strong.
The uncertainty comes later.
If economic growth begins slowing next year, the Fed could find that it tightened monetary policy just as economic momentum was beginning to weaken.
Michael expects another rate increase may come later in the year, but he believes the bigger test will be whether the economy remains resilient after those higher borrowing costs work their way through businesses and households.
Consumer spending has remained stronger than many expected, but Michael believes headline spending numbers may hide an increasingly important divide.
He joked that investors should “never underestimate the American consumer with a credit card,” but the underlying point was more serious.
Some households continue spending even as credit balances rise and higher energy costs consume more of their budgets. That may be sustainable for a period, but it can eventually create pressure, particularly among lower-income consumers.
Michael sees a different picture at the upper end.
“Wealthy people with discretionary, they don’t seem to stop.”
That distinction matters when evaluating consumer-facing businesses.
Rather than treating the consumer as one group, Michael believes investors should consider who is actually spending, how sensitive those customers are to higher interest rates, and whether rising living costs could change their behavior.
With the 10-Year Treasury yield around 5%, investors have another consideration.
Higher government bond yields create direct competition for stocks.
When relatively low-risk securities offer attractive yields, equities need to provide sufficient earnings growth and potential appreciation to justify the additional uncertainty.
That is one reason Michael is reluctant to chase companies already trading near record highs.
“We’re trying to buy some things that are not at the 52-week high that are not in the AI space.”
AI remains an important investment theme for Landsberg Bennett, but Michael believes portfolios also need exposure to businesses driven by different factors.
Higher rates make that selectivity increasingly important because valuation matters more when investors have more alternatives for their capital.
Artificial intelligence remains one of Michael’s primary long-term investment themes, but he does not believe every opportunity needs to be connected to it.
That becomes especially important when AI exposure begins appearing throughout technology, utilities, industrials, energy, and infrastructure.
A portfolio can appear diversified while still depending heavily on the same underlying theme.
Michael is therefore looking for businesses with different sources of growth, including consumer behavior, demographics, health trends, and companies benefiting from specific competitive advantages within their markets.
The objective is not to reduce AI exposure simply because the theme has performed well. It is to prevent one theme from becoming responsible for too much of the portfolio’s outcome.
Michael also discussed the importance of distinguishing between a temporary stock-price decline and a deterioration in the underlying business.
A company can disappoint investors because it is reinvesting money into future growth rather than because demand has weakened.
That creates a very different investment question.
Instead of simply asking whether a stock has fallen enough to become attractive, Michael looks at what caused the decline and whether the company’s longer-term earnings potential remains intact.
Temporary weakness can create an opportunity when the fundamentals remain sound.
Weakness caused by declining demand, deteriorating margins, or structural problems requires a different response.
We believe the current environment illustrates why investors should avoid evaluating markets through a single headline.
Corporate earnings remain strong, but interest rates are higher. Consumer spending remains resilient, but financial pressure is not distributed evenly across households. AI continues to provide meaningful growth opportunities, but excessive exposure to one theme can increase portfolio risk.
That combination makes portfolio construction increasingly dependent on selectivity.
We continue to focus on earnings growth, reasonable valuations, position sizing, and investments driven by different economic forces. We also believe investors should pay close attention to how higher interest rates and energy costs affect individual businesses and consumers rather than assuming every part of the economy will respond in the same way.
The market does not need perfect conditions to keep moving forward. But as rates rise and economic pressures become less evenly distributed, the quality of the earnings and the price paid for them matter more.
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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