Welcome to our February 2026 Viewpoints, a monthly bulletin from PDS Planning to our valued clients and friends. Our goal with each issue of Viewpoints is to provide you with a wide variety of perspectives on life and wealth. Feel free to share with others.
Your Favorite Asset Class Quilt
Rebalancing and diversification are once again paying dividends. Below are asset class returns stacked from worst to best for each year between 2011 and year-to-date 2026. On the surface, it looks chaotic. As we dig in, the chaos becomes more understandable, but it’s still unpredictably random.
There’s no smooth pattern. No rotation you could confidently predict ahead of time. It’s musical chairs. Last year’s winner is not a reliable guide for next year. Instead of trying to pick the next winner, we prefer to invest in a diversified allocation, with periodic rebalancing as needed, to take part in the winners each year.
Currencies Against the Dollar
You may have noticed in the asset class performance above that Emerging Markets and Developed International markets are at or near the top year to date and for 2025. Part of the outperformance was due to the U.S. dollar decreasing in value while other currencies appreciated against it.
For example, as the euro rose 13.5% against the dollar, investments in eurozone companies, when converted back into dollars from euros, were able to buy more dollars than before, giving performance an added tailwind.
Muni Bonds
Cooper Howard, Director of Fixed Income Research and Strategy at Charles Schwab, had this to say about long-term muni bonds: “For investors who are comfortable taking on additional interest rate risk, we believe longer-term munis are worth consideration. Duration risk is the risk that the price of an existing bond will decline if interest rates rise. Prices for longer-term bonds are more sensitive to changes in interest rates than shorter-term bonds. As illustrated in the chart below, yields for AAA rated munis and Treasuries after taxes are nearly the same for maturities inside of 10 years. However, further out the yield curve, munis offer a yield advantage of over 100 basis points, which is the equivalent of 1.0%.“
For investors willing and able to hold long-term municipal bonds with it also making sense as part of the overall financial plan, it may be worth a conversation!
The World Baseball Classic is Back!
The World Baseball Classic is back, with the first pool games starting March 5th. The level of talent across all teams is arguably the best it has ever been, with Team USA trotting out Bobby Witt Jr., Aaron Judge, and Cal Raleigh every day, along with two of the best pitchers in the world, Paul Skenes and Tarik Skubal. But then team Japan has 2025 World Series superstar Yoshinobu Yamamoto on the bump and, of course, 4 time MVP Shohei Ohtani.
The USA plays its first game on Friday, March 6th at 8:00 p.m. EST against Brazil, followed by a game the next day against Great Britain.
The first round takes place in 4 locations:
- San Juan, Puerto Rico
- Houston, Texas
- Tokyo, Japan
- Miami, Florida
I AM EXCITED.
IMPORTANT DISCLOSURE INFORMATION: Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by PDS Planning, Inc. [“PDS”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from PDS. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. PDS is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the PDS’ current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.pdsplanning.com. Please Note: PDS does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to PDS’ web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a PDS client, please contact PDS, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
