Quarterly Letter – Q2 2026: War or Peace?
July 24, 2026
Last quarter, investors seemed to throw off the concerns that had weighed on markets in Q1 about the impact of the Iran-US war on the global economy. Unexpectedly good US inflation data for June was coupled with a slight dip in unemployment. Company earnings stayed mostly strong, with results beating expectations by as much as 40% for companies reported so far. And, in financial markets, optimism about AI-related trades returned to the fore, powered in part by the record-breaking IPO of SpaceX and the prospect of others to come.