Insights

At Howland Capital, we believe that our greatest asset is our people. We are committed to fostering an environment where talent is recognized and career growth is encouraged. In that spirit, we are pleased to announce the promotions of Gianni Reid and Evan Pennoyer. 

It’s hard to believe, but in a few short weeks, students will be graduating from high school or returning home from college to spend the summer with their families. In between summer jobs and vacations, the summer is a great opportunity to have important conversations with children about their own financial and estate planning.  

When we entered the new year, the market widely anticipated a continuation of the Federal Reserve’s easing cycle (i.e. interest rate cuts) in 2026. Given the recent escalation in the Middle East, the interest rate path for 2026 has become less clear. Consensus in the market now calls for zero interest rate cuts this year – a reduction from the two rate cuts anticipated at the start of the year.

After a relentless multi-year push higher, stocks pulled back in the first quarter, with the tech-heavy Nasdaq index even reaching correction territory (down more than 10% from its peak). Though we are still in the early innings of the development and rollout of artificial intelligence, soaring capital expenditure forecasts for the mega cap tech players have called into question the timing and magnitude of the returns that leading tech companies will ultimately realize on their investments.

The U.S. economy entered 2026 on uncertain footing, and the first quarter did little to change the tone. The fourth quarter GDP was revised down to a 0.7% annual growth rate by the Bureau of Economic Analysis. What was initially a weaker reading from the prolonged government shutdown was subsequently lowered due to slower-than-expected consumer spending and business investment.

A Special Needs Trust (SNT), also known as a Supplemental Needs Trust, holds assets for the benefit of a person with disabilities while preserving eligibility for needs-based benefits such as Supplemental Security Income (SSI) and Medicaid. Funds from the trust are used to supplement public benefits, not replace them.

We are proud to announce that Peter Dixon has been named President. Peter's dedication to the firm and his strategic perspective position him well to help lead Howland Capital as we continue to build for the future. He will continue to serve as Chief Investment Officer and as a Portfolio Manager, remaining deeply involved in investment research and the direct management of client portfolios.

While headlines in 2025 were dominated by varying uncertainties, the tax world was one of the few areas that demonstrated relative clarity, with the enactment of the One Big Beautiful Bill Act (“OBBBA”). While much of the public focus has been on the law’s macroeconomic implications, the legislation introduces several meaningful changes that will directly impact individual taxpayers starting in 2026. Understanding these provisions is key to tax strategy for the years ahead. 

Since September, the Federal Reserve has elected to cut rates three times, each by 25 basis points, bringing the federal funds target range down to 3.5% - 3.75%. The Federal Open Market Committee (FOMC) members continue to navigate a challenging environment characterized by elevated prices alongside a softening job market.

The upward trajectory of equity markets continued in the fourth quarter, with Santa delivering an all-time high for the S&P 500 Index to investors on Christmas Eve, only to be surpassed by New Year’s Eve! As the year comes to a close, the S&P has now closed higher for seven consecutive months and is closing in on the 7,000-point mark, nearly double the lows seen all the way back in… late 2022.

The fourth quarter kicked off with a prolonged government shutdown that caused widespread disruptions for many Americans.  But this came on the heels of strong economic growth in the third quarter, which saw GDP grow at an annualized rate of 4.3%, representing the fastest rate in two years.