Summer 2026 Investor Letter: Continued Broadening

By David Templeton of HoranWealth

Portfolio Manager & Principal, HORAN Capital Advisors • Jul 11, 2026 at 8:25 AM EDT

Small-cap stocks outpaced the S&P 500 in the first half of 2026, signaling a significant broadening of market participation.

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With the first half of 2026 in the rearview mirror, the equity markets have been mostly kind to investors. A broadening of market participation accelerated in the second quarter with small company stocks (S&P Small Cap 600 Index) up 19.7% in the second quarter and outpacing the S&P 500 Index return of 15.2%. For the first six months of the year, small cap stocks are up 23.9% and more than double the return of the S&P 500 Index return of 10.21%.

Our Summer 2026 Investor Letter touches on factors contributing to these strong returns, with one being the strength in corporate earnings. The estimated growth rate for 2026 S&P 500 earnings is 29.4% and far better than the 14% growth rate in 2025. When the year began, the 2026 S&P 500 earnings growth estimate was 15.6%. Artificial Intelligence has been an overarching theme for investors, and the newsletter touches on some of our thoughts around this theme.

More of our thoughts on the year and the second half are contained in the Summer 2026 Investor Letter.

Disclaimer:

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HORAN Capital Advisors, LLC is an SEC registered investment advisor. The information herein has been obtained from sources believed to be reliable but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HCA and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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