August Heat
Hello everyone, and welcome to the August 2026 edition of the Boodle blog! If this is your first time here, we welcome you! If you’re a returning member, we thank your for the trust you’ve placed in our company.
At Boodle, we believe that the person best qualified to manage and grow your finances is you. Boodle works with you and we help grow your knowledge, as you grow your money. It’s hard to believe, but we have just five months of trading left in 2026, and a lot of potential potholes that could wreak havoc on the US economy, and additionally our portfolios.
Against the backdrop of the Iran/US war, a new Federal Reserve Chairman, higher energy prices, retail investors will have to deal with the midterm elections that are taking place in November, and these political races have the potential to change the direction of the country, and as a consequence your portfolios.
Before we offer our opinion on the direction the market will head in for August, we’ll take a look
back in the month of July, and where the market sits as we go to press on Saturday the first of August.
The DOW slipped 0.78% for the month of July, but has a 9.20% year-to-date advance. The S&P 500 finished essentially flat at 0.09% for July while holding a 9.41% gain for the year. The tech-heavy NASDAQ closed down 1.78% for the month and finished in a near dead heat with the other two indices at 9.17%.
President Trump continues to rage war with Iran and neither side appears to be ready to talk peace. The straight of Hormuz remains mostly closed, which is preventing oil tankers from passing, which affects the price of oil and, in turn, gasoline prices. The US economy continues to struggle as it tries to move forward, but between the price at the pump, and the prices at the supermarkets, many Americans would like to see this war end as soon as possible.
It seems that wars are relatively easy to start, and difficult to stop. Boodle will continue to monitor this conflict and report any significant changes in this blog.
At the first Fed meeting with new Chair Kevin Warsh interest rates remained unchanged for now, with a promise to deliver price stability for American households. The Fed Chair stated during his news conference that forward guidance did not suit current fiscal policy and this announcement was a break from previous statements from Fed Chairs.
Headline CPI (consumer price index)decreased 0.4% and food prices rose 0.2% over the last 12 months.
Boodle believes that August stock prices will hold pretty much where they are now, unless we get some news that the war (this time) will end and the straight of Hormuz will finally see oil tankers freely moving through the straight as they did before the start of hostilities.
We are of the opinion that boodle clients should continue to remain disciplined and focused on their strategies especially dollar-cost-averaging. We believe that certain events, such as the midterms, or the resolution of the war, will potentially lead to a possible advance in everyone's portfolios. We will see you back here in September, until then, have a safe August, and we thank you for choosing Boodle.