The Q1 2026 Quarterly Market Update highlights a U.S. economy that slowed late in 2025 but avoided recession, with weakening job growth offset by falling unemployment, rising real wages, and moderating inflation. Demographic headwinds remain a long-term challenge, while housing affordability is strained despite some relief from lower interest rates. The Federal Reserve’s rate cuts in 2025 supported a soft landing, stabilizing GDP growth and lowering recession odds for 2026.

Markets delivered strong returns in 2025 across stocks, bonds, and hard assets, though gains were highly concentrated among a small group of large-cap stocks and select sectors. International equities and emerging market assets benefited from a weaker dollar, while fixed income posted robust, lower-volatility returns. Looking ahead, elevated equity valuations, potential mean reversion in U.S. large caps, and shifting market leadership underscore the importance of diversification across geographies, asset classes, and private markets.

DISCLOSURE: Securities highlighted or discussed in this communication are mentioned for illustrative purposes only and are not a recommendation for these securities. Evergreen actively manages client portfolios and securities discussed in this communication may or may not be held in such portfolios at any given time. This material has been prepared or is distributed solely for informational purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Any opinions, recommendations, and assumptions included in this presentation are based upon current market conditions, reflect our judgment as of the date of this presentation, and are subject to change. Past performance is no guarantee of future results. All investments involve risk including the loss of principal. All material presented is compiled from sources believed to be reliable, but accuracy cannot be guaranteed and Evergreen makes no representation as to its accuracy or completeness.