03/31/2026
February Letter to Clients:
Portfolio Review
We are in a good place. Your accounts have gained on average 13% in the first two months of 2026. The majority of our long-standing portfolios were up double the market returns in February and year-to-date. Most have about one-third protected from common stock volatility in preferred stocks and cash equivalents offering high yields.
We are navigating the politics and problems of the world with portfolio discipline.
The exceptional rates of return may not be sustainable, but we are making every effort toward maintaining our lead and reducing risks.
We can't forget that 2025 was an extraordinary year. The average growth portfolio gained 42% in 2025.
We also always consider your tax bracket and the impact of capital gains tax in our decision-making process when managing taxable portfolios. As you file your tax returns this spring, update us on your tax situation. We want the best for you, and we are on the same team when it comes to investing and saving money for the long term.
Market Insights
In February, the U.S. capitalization-weighted stock market indexes had their worst performance in eleven months due to AI and inflationary fears. The Nasdaq dropped over 3%, and the S&P 500 fell roughly 1%. The index we use, the S&P 500 Equal Weight, was up 3%.
There was significant volatility for high-flying stocks in February. Major technology names, including Oracle, Microsoft, and Google (none of which you own), had losses. Large market participants seem to have rotated into safer sectors: Materials, Utilities, and Energy. Howland and Associates works to maintain a sector-neutral approach and build safer portfolios diversified across all sectors.
Take care.
Dee S. Howland, CFA®, President
[email protected]
*Text or Call (813) 503-5625
Robert C. Howland, CFP®, Senior Vice President
[email protected]
*Text or Call (813) 777-9717
Howland and Associates, LLC
10261 4th Street N.
Saint Petersburg, FL 33716
