“Friday’s strong jobs report pushed traders to raise bets on a rate increase by year-end, [causing stocks to sell off]” … Wall St Journal, 6/05/2026
“A growing number of [market signposts] suggest the market could be approaching a [pullback] … Bank of America, Yahoo Finance 6/9/2026
Where Are We, End of May 2026?
After about 2 months of a relentless climb, it may be that we give some gains back in June. Many of what observers call “signposts” are contrarian indicators, such as when FOMO (fear of missing out) investors seem to be busy investing. But many of them are indicators that suggest tightening credit, rising interest rates and the disparity between cheap and expensive stocks. In simple terms, we might talk about excessive speculation. This is most notable in the tech sector, where the disparity is historically large between the performance of the top bottom fifths of the Nasdaq index.
As of the beginning of June, we are in a down-market cycle. There are generally two in every calendar year, differing in depth and duration. We had one already from early February to early April. It remains to be seen how long or deep this goes. Corrections are normal. My own view is that the markets are experiencing an adjustment of perspective, to some degree due to overextended valuations, as well as uncertainties about inflation and interest rates.
Astoria Advisors
I have established a relationship with Astoria Advisors, https://www.astoriaadvisors.com/, a multi-billion-dollar firm that will serve as my sub-advisor. Please look for an email from me with more details, along with a Fidelity form needed to move forward.
Following is the performance of the market indexes and our funds in May:
| May-26 | |||
| S&P 500 | 5.15% | ||
| Nasdaq (technology) | 8.36% | ||
| Dow 30 | 2.78% | ||
| Morningstar US Mkt (all stocks) | 5.06% | ||
| Morningstar US Small Companies | 1.75% | ||
| 2 year Treasury YIELD | 4.05% | ||
| 5 year Treasury YIELD | 4.19% | ||
| FBCG | 7.85% | Fidelity Blue Chip Growth | stock ETF |
| SPMO | 12.56% | Invesco S&P 500 Momentum | stock ETF |
| XSMO | 1.60% | Invesco Small cap Momentum | stock ETF |
| XMMO | 5.64% | Invesco Midcap Momentum | stock ETF |
| TMFC | 5.55% | Motley Fool 100 | stock ETF |
| VBR | 1.04% | Vanguard Small Cap Value | stock ETF |
| RSP | 2.65% | Invesco S&P Equal Wt | stock ETF |
| NOBL | -1.00% | Dividend Aristocrats | stock ETF |
| NLR | -8.68% | Van Eck Nuclear | stock ETF |
| FBGRX | 8.22% | Fidelity Blue Chip Growth | stock mutual fund |
| OBMCX | 0.35% | Oberweis Micro-Cap | stock mutual fund |
| FSLVX | 0.26% | Fidelity Large Cap Value | stock mutual fund |
| FSMVX | 1.93% | Fidelity Mid Cap Value | stock mutual fund |
| FCPVX | 1.38% | Fidelity Small Cap Value | stock mutual fund |
| CPEFX | 2.46% | Cascade Private Capital | private equity mutual fund |
| BUCK | 0.25% | Simplify Stable Income | ETF Income Fund |
| BMACX | 0.13% | Blackstone Income Fund | income mutual fund |
| CCLFX | 0.48% | Cliffwater Corporate Lending | income mutual fund |
| CELFX | 0.46% | Cliffwater Enhanced Lending | income mutual fund |
| CFRAX | 0.72% | Catalyst floating rate | income mutual fund |
| EIFAX | 0.58% | Eaton Vance floating rate | income mutual fund |
| FFRAX | 0.78% | Fidelity floating rate | income mutual fund |
| RNDLX | 0.29% | RiverNorth Strategic | income mutual fund |
| FAGIX | 1.94% | Fidelity Capital & Income | income mutual fund |
| Starwood REIT, class I | 0.02% | Apr* | real estate investment trust |
| Blackstone REIT, class I | 1.10% | Apr* | real estate investment trust |
| Fidelity Credit Fd, class I | 0.60% | Apr* | private lending trust |
| Blackstone Credit Fd, class I | 0.30% | Apr* | private lending trust |
| Blackrock Credit Fd, class I | 1.35% | Apr* | private lending trust |
(Courtesy morningstar.com)
* 1-month reporting lag
Following are your May investment results:
We should talk if you would like to review exactly where you stand or if we should consider a change. I am available at your convenience. I have Google Meet and Zoom in case you would like to do a video conference. KII’s most recent ADV Part 2 Brochure and Privacy Policy are each available upon request. Also, please consult your Fidelity statement for advisor fee information.
Best,