Monthly Observations - January 2026

Monthly Observations February 2, 2026 The S&P 500 started the new year with an impressive 1.4% return in January, while the MSCI All Country World index gained even more, rising 2.9% in the first month of the year. The Bloomberg BarCap U.S. Aggregate Bond index had a weaker start, increasing just 0.1% in January. There were a number of geopolitical events this month including a large military operation in Venezuela, threats to Greenland and Denmark (which includes the island among its territories), as well as to other Nato countries which objected to the United States’ claim that they would take the island by force if necessary. Monthly Highlights The US military captured Venezuelan President Maduro and put him in jail in New York Federal Reserve Chairman Powell was served a subpoena by the Dept. of Justice President Trump decided not to impose tariffs on European allies over Greenland News in Review Below are some stories that caught our eye this past month. To learn more, follow the links to the full article. President Maduro Captured After US Airstrikes on Venezuela The United States military entered Venezuela and took President Maduro and his wife into custody. He had been indicted in the US for drug trafficking and coordinating with gangs, which had been designated as terrorist organizations. President Trump said that the US was “in charge” of Venezuela, although the Secretary of State, Marco Rubio, clarified that there wasn’t a plan to directly govern the country. Federal Reserve Chairman Powell Served with DOJ Subpoenas On Sunday, January 11th, the Department of Justice served the central bank with subpoenas and threatened criminal prosecution over cost overruns during the Fed’s renovations. The president has previously threatened Powell, but distanced himself from this particular action. A number of Republicans were alarmed at the attack on Fed independence and the Senator in charge of the Banking Committee was so upset that he said that he would block all nominations until this was resolved. Trump Says Framework Discussed on Greenland as He Walks Back Tariffs Threat The President softened his tone on acquiring Greenland or by taking it by military force, saying that a framework on military cooperation and access to rare earth minerals had been discussed with Nato’s secretary general Mark Rutte. He also decided not to impose tariffs on our European allies who had objected to the US claiming that they would invade Greenland if Denmark wouldn’t sell the island. Fortunately all of that talk was not acted upon and this issue was resolved peacefully. Netflix Moving Beyond Their Origins and Into Live Events The world’s largest streamer of movies and television shows has slowly been moving into live events, including sports and a talent show, so their latest event was a 90-minute climb of a 101 story building in Taiwan. Famous free solo climber Alex Honnold succeeded in making it to the top of the skyscraper in front of large crowds in the city of Taipei. DISCLOSURES Securities offered through LPL Financial, Member FINRA/SIPC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial. The opinions expressed in this material do not necessarily reflect the views of LPL Financial. This newsletter was written and produced by the Independent Advisor Alliance, LLC. Content in this material is for general information only and 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. The views stated in this letter should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX: The Standard & Poor's 500 Index is an unmanaged, capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. NASDAQ 100 INDEX: The Nasdaq 100 Index is an unmanaged, capitalization-weighted index of the largest 100 non-financial stocks traded on the Nasdaq market. Unlike the S&P 500 it does not represent all major industries and may be more volatile than more broadly constructed indices. MSCI ACWI INDEX: The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 24 emerging markets (EM) countries. With 2,495 constituents, the index covers approximately 85% of the global investable equity opportunity set. Bloomberg U.S. Aggregate Bond Index: The Bloomberg U.S. Aggregate Bond Index is a broad-based index of the U.S. investment-grade, fixed-rate bond market, including both government-related and corporate securities and mortgage- backed and asset-backed securities. Indexes are unmanaged and cannot be invested into directly. All performance referenced is historical and is no guarantee of future results. Please note this newsletter contains hyperlinks to additional content. The information being provided is strictly as a courtesy. We make no representation as to the completeness or accuracy of information provided by these websites.