This Week’s Blog Is Written By Scott D. Heins, CFP®, IAG Chief Investment Officer
July 22, 2026

Rotation

Thus far in the 2026 stormy season, the National Weather Service has officially documented 39 tornadoes touching down in Wisconsin.

These 39 twisters travelled a total of 178.19 destructive miles across Wisconsin’s landscape. The lengthiest tornado lasted almost 20 miles, while the shortest lasted just over a quarter mile.

Rotation can be sudden and very destructive. It has the potential to be so dangerous that we dedicate millions of dollars every year to monitor storms, issue watches and warnings, and test loud sirens or phone alerts.

Rotation can also be expected and harmless. We do not give a second thought to the Earth’s daily rotation on its axis or our annual rotation around the sun. I would venture to say these are considered rotational nonevents for most people.

The financial markets also have rotations. Some are very sudden and uncomfortable (Black Monday, technology bubble, Global Financial Crisis, COVID collapse, etc.). Other rotations are far more subtle and perhaps even hidden.

Despite a minor market storm in March, most of the market rotation this year has been of the calmer variety. The huge technology companies that have led the markets upward for a couple of years have seen their stock price momentum slow, and the underappreciated smaller and non-technology companies have experienced a renaissance.

According to the National Weather Service, there are three primary ingredients to create a tornadic thunderstorm – moisture, instability, and lifting. Next week, the financial markets could experience all three of these ingredients.

The Federal Reserve’s Federal Open Market Committee meets on July 28-29. Traders will be watching intently for signs that the committee may be lifting short-term interest rates in the near future.

The Strait of Hormuz continues to be a source of market instability, with headlines vacillating between optimism for deescalation and reports of active hostilities.

Finally, several giant technology companies will report their quarterly earnings next week. Traders will be evaluating whether these previously highly profitable companies will be able to maintain their reign despite their massive spending on data centers and other artificial intelligence infrastructure.

If I were authorized to do so, I would issue a market thunderstorm watch for next week. There is the potential we could see some additional market rotation that could be impactful for a few days or beyond.

When tornado watches and warnings are issued, you do not uproot your entire home and temporarily move it to a non-stormy location. Instead, you take some reasonable precautions and weather the storm.

Similarly, you should avoid temporarily uprooting your entire investment portfolio during market storms. Take the opportunity before the storms to verify that your portfolio is aligned with your long-term goals before the storm, and when the storms arrive be confident that the sun will shine tomorrow.

If you or someone you care about would like to evaluate their weather precautions before the market storms strike, one of our caring advisors would be happy to assist.

Quote of the week: Amelia Barr: “It is only in sorrow bad weather masters us; in joy we face the storm and defy it.”

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial. Jason Ganiere is solely an investment advisor representative of IAG Wealth Partners LLC, and not affiliated with LPL Financial.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. Asset allocation does not ensure a profit or protect against a loss.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. No strategy assures success or protects against loss. Investing involves risk including loss of principle.

ART: 1144527
Photo Credit: iStock 2209061163