Stock investors were rewarded for staying the course in November, as markets bounced back from a brief dip and finished the month near record highs (source: Yahoo! Finance). This marks seven months in a row of gains for the S&P 500 — something to appreciate as we wrapped up the Thanksgiving season. Hopes for lower interest rates helped lift spirits, and growing optimism around the economy, company earnings, and continued advancements in artificial intelligence (AI) added support.
As we head into December, the job market remains the key area to watch. A healthy job market keeps consumers confident and spending, which is especially important during the holidays. We expect job growth to continue at a slower but still positive pace as the government releases updated data that had been delayed by the recent shutdown.
Looking a bit further out, a set of new tax cuts from the One Big Beautiful Bill Act (OBBBA) is scheduled to take effect in early 2026, putting more money back into consumers’ pockets.
At the same time, the White House has shifted more attention toward affordability challenges facing many households. The so-called “K-shaped economy” — where higher-income families have benefited from rising asset values while many others continue to struggle — remains a major issue. Policies aimed at easing the pressure on everyday families, especially around housing, may help strengthen overall consumer health.
Corporate America Shows Its Strength
Despite all the noise this year, American businesses continue to demonstrate remarkable strength and flexibility.
The most recent corporate earnings season showed this clearly: more than 82% of large U.S. companies beat their earnings expectations — the highest rate in over 15 years according to LPL Research. Company profits grew 13%, making it the fourth straight quarter of double-digit growth.
Even with higher costs in some areas, companies managed to preserve and even grow their profit margins through sound financial management and productivity improvements. Many business leaders also expressed confidence about the road ahead, which encouraged analysts to raise their expectations for 2026 earnings.
This continued strength is a good reminder of why staying invested — especially in quality companies — remains a powerful long-term strategy.
Looking Ahead to 2026
As we approach a new year, several key themes will continue to influence the markets:
- The Federal Reserve’s decisions around interest rates
- The path of inflation and job growth
- How companies and investors approach AI
- The upcoming midterm elections
- The strength of the U.S. dollar
- Ongoing geopolitical tensions around the world
While no one can predict exactly how these factors will play out, we do expect the usual bouts of market volatility. In my view, this is not something to fear — it is simply part of the investing journey. Short-term ups and downs often create opportunities for disciplined, patient investors.
There will continue to be promising areas tied to innovation, changing policies, and long-term economic growth. But the most important ingredients for success remain the same: staying diversified, staying flexible, and trusting the long-term plan we’ve built together. Temporary price declines aren’t failures in the market — they are the price we pay to pursue meaningful long-term gains.
A Heartfelt Thank You
As we close out 2025, I want to express my sincere gratitude for your continued trust and confidence. This year — like every year — brought its share of ups and downs. Markets shifted, headlines changed, and life continued to remind us that uncertainty is a constant companion. But through it all, we navigated it together.
Your willingness to stay engaged, ask thoughtful questions, and remain committed to your long-term plan has been both inspiring and humbling. At Mercer Partners, it is a true privilege to walk alongside you and your family — through the milestones, the challenges, and the meaningful decisions that shape your financial life.
Our mission remains unchanged: to help you continue building toward the freedom, dignity, and outcomes that define true financial independence.
From my family to yours, I wish you a joyful holiday season and a prosperous new year.
Best,
Nick
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Mariner Independent Advisor Network, LLC, a registered investment advisor. Mariner Independent Advisor Network, LLC and Mercer Partners Wealth Management are separate entities from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
No strategy assures success or protects against loss.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
