This Week’s Blog Is Written By Scott D. Heins, CFP®, IAG Chief Investment Officer
May 13, 2026

Volume

I’m sorry, what did you say?

Life gets harder as you get older. The cumulative impact of blaring music in your teen years, lawn mowers and blow dryers, or a high-decibel work environment can reduce your capacity to hear.

Suddenly, you or your spouse find yourself reaching for the up-volume button on the remote a little more frequently. Or perhaps you find yourself increasingly requesting a repeat during conversations. Or, more bluntly, your conversations include a lot of “What?”

This persistent request for higher volume is a clear sign that something is wrong with your hearing.

As non-living entities, the financial markets are, by definition, completely deaf. However, they thrive on higher volume.

Over the last 19 trading days the S&P 500 Index has closed at record highs 12 of those days. You would think this is absolutely fantastic news, and I do concede that for people who prefer high(er) markets it could be a source of at least temporary smiles.

However, there has been one key ingredient missing from this upward migration of stock prices – trading volume.

Sustainable market upswings are generally built on higher trading volume. When many traders participate in a market rally, there is a strong foundation on which to build future gains. When trading volume is light, rallies tend to be more fragile.

Knowing that this particular volume-deprived spate of record highs may be more susceptible to a pullback due to low volume and chaotic geopolitical events, fear-inclined traders may be tempted to try and outthink the market by eliminating their allocation to stocks until a stronger rally gets under way. They fail to consider that one of the market’s primary objectives is to frustrate those who believe they can predict the future with any certainty.

Long-term logical investors evaluate such volume-deprived rallies from a different perspective. Fully acknowledging that there are risks of both a known and unknown nature ahead, they abide by their long-term investment plan that accommodates the whims of emotionally unstable traders over time.

Instead of trying to predict where the markets will go, they observe how market forces have reshaped their portfolio and take the necessary steps to realign their distorted portfolio with their long-term investment risk budget.

Sometimes this means they must trim back on stocks when they rally. Sometimes this means they must add to stocks after they inverse rally.

For those of you who enjoy market upturns, now is the time to turn up the volume if you wish to keep the party going. For those logical, stoic, non-party types, continue to turn a deaf ear to any siren songs the markets may be singing.

Quote of the week: George Saunders: “Irony is just honesty with the volume cranked up.”

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.

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.

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Photo Credit: iStock 1336450750