Jamie Schrotberger, CFA Senior Portfolio Manger Faithward Capital


As we continue through fall, investors are also reading the market’s changing colors — signals flashing green, yellow, and red.


D


espite a few speed bumps in 2025, such as tariffs, labor pressures, and commodity inflation, corporate earnings growth has held up remarkably well.


Efficiency gains through technology have helped companies manage costs and sustain profitability.


Looking ahead, 2026 appears poised to follow a similar path: ongoing challenges balanced by productivity improvements and disciplined expense management.


So far this year, equity markets have been driven higher by strength in data center technology, artificial intelligence, and commodities. AI-related capital investment — particularly in data centers — continues to grow rapidly, fueling a surge in orders and earnings for companies within the AI “food chain.” As always, earnings and expectations drive prices, and those companies experiencing the greatest upward revisions have led the charge. The market’s uptrend remains intact for now, though elevated valuations will determine how long the current momentum continues.


Although we remain constructive on the market, we believe future gains will likely broaden across sectors and company sizes. As interest rates gradually decline, we anticipate a pickup in earnings from consumer-oriented businesses and an acceleration in merger and acquisition activity. Real estate velocity should also improve as financing conditions ease. Small and mid-sized companies, which have lagged in recent quarters, may begin to outperform larger peers as investors search for the next leg of earnings growth. The overall tone remains optimistic — but more balanced, with leadership expected to shift across different areas of the economy.


Thematically, we see sustained growth in key innovation areas such as business intelligence, AI, and the continued migration to cloud infrastructure. At the same time, we are finding new opportunities in supply chain optimization, home ownership, clean energy, e-commerce, and environmental stewardship. Our approach remains rooted in building well-diversified portfolios composed of biblically responsible companies that demonstrate both financial strength and positive societal impact. We seek out businesses guided by enduring values — those that steward resources responsibly, treat people with dignity, and contribute to the flourishing of their communities.


As we review our holdings and screen for new investments, we are continually reminded that sound stewardship and disciplined investing can lift not just returns, but also our communities and the world around us. These guiding principles inform every decision we make, helping ensure our portfolios align with both conviction and compassion.


The opportunities ahead are immense. Our portfolios remain sector neutral, offering balanced exposure across industries while emphasizing high-quality earnings. Through rigorous biblically responsible screening, we identify companies that combine durable growth potential with integrity and purpose. As the year progresses, we are preparing to introduce additional faith-aligned strategies — designed to give clients greater ability to invest in accordance with their values, while participating in the long-term growth of strong BRI leaders.


As stewards of capital and faith, we continue to see the investing landscape not just in shades of green, yellow, and red — but as a living reflection of hope, progress, and responsibility.


FAITHWARDADVISORS.COM • 9


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