And It’s Only February
February 15, 2026 | Member Submitted
By David Vomund
To no one’s surprise traders have been doing what traders do (trading) and taking profits or losses from time to time. We saw a sell-off recently, mostly coming from last year’s winners. It was not across the board. Large energy stocks rose along with some healthcare companies, consumer staples, and utilities.
The financial and general media are too focused on averages and indexes with their large daily moves that are featured on the evening news. With more than a third of the S&P 500 comprised of technology stocks, those with a broader exposure can do well even when that index falls. The S&P 500 is about unchanged in 2026 but mid-cap indexes are up 7.8 percent and small-cap indexes are up 8.9 percent.
International markets are also strong. The Vanguard FTSE All-World ex-US ETF has jumped 9.2 percent in 2026. Another low-fee choice is the Schwab International Dividend Equity ETF (SCHY). It yields 3.4 percent and has gained 5.5 percent this year.
Energy stocks were setting all-time highs even as the price of crude was falling. Expect more highs as the energy super cycle I’ve written about rolls along, fueled by the global demand for LNG and AI’s impact on demands for power and ways to generate and deliver it.
Recently the IEA raised its estimate of global demand for oil this year by 930,000 barrels a day due to economic growth. The surge is due to massive demand growth, partly caused by the construction of power-hungry data centers from coast to coast and the impact of AI.
This isn’t to say that solar isn’t needed. It is, which explains the year-to-date return of 18 percent in the Invesco Solar ETF (TAN)! The energy bull market comes as no surprise.
Earnings growth is the market’s largest tailwind. Expect 15 percent this year. Number two. — the macro growth picture thanks to tax and business incentives that took effect in January and AI’s impact. Earnings reports have been better than expected. In fact, 80 percent of those S&P companies reporting have exceeded estimates.
In these articles I have explained the bull market. Faced with potential positives and potential negatives I bet on the former. Why? Because the choice is not a coin flip. There are millions of investors whose interest is best served if the well-known issues are resolved quickly and positively. We are optimists. Investors have to be. There is never a large constituency for failure.
— David Vomund is an Incline Village-based fee-only money manager. Information is found at www.VomundInvestments.com or by calling 775-832-8555. Clients hold the positions mentioned in this article. Past performance does not guarantee future results. Consult your financial advisor before purchasing any security.