The increased market volatility during the first quarter of 2026 was driven by an AI-induced pullback in technology stocks, the Supreme Court’s reversal of executive branch tariff powers, and the war in Iran. As a result of these headwinds, the Index declined 4.3% during the period. Performance leadership came from commodity-sensitive sectors, with the Energy and Basic Materials sectors among the strongest performers.

We understand how concerned you may be with the uncertainty from the Trump Administration’s tariff decisions and the impact it is having on your investment portfolio. Our view is universally imposing such high levels of tariffs with our global trade partners is bad economic policy and not in the long-term best interest of our country. Our role as your investment advisor is to analyze the potential effects of the policies on the companies in your portfolio.

Please find attached your Talbot Financial Second Quarter 2025 portfolio review to supplement your monthly account statements available from Schwab. The report provides a performance summary of your investment portfolio compared to the S&P 500 Total Return Index (“Index”), Talbot Financial’s benchmark, and lists your investment portfolio holdings by industry sector.

Please find attached your Talbot Financial Third Quarter 2025 portfolio review to supplement your monthly account statements available from Schwab. The report provides a performance summary of your investment portfolio compared to the S&P 500 Total Return Index (“Index”), Talbot Financial’s benchmark, and lists your investment portfolio holdings by industry sector.

Please find attached your Talbot Financial Fourth Quarter 2025 portfolio review to supplement your monthly account statements available from Schwab. The report provides a performance summary of your investment portfolio compared to the S&P 500 Total Return Index (“Index”), Talbot Financial’s benchmark, and lists your investment portfolio holdings by industry sector.