Fourth Quarter 2026 DFG Client Letter

Welcome to the final Delmarva Financial Group (DFG) quarterly client letter of 2026. As fall gets underway, we want to recap the third quarter, share updates from our team, and outline several planning themes we are monitoring as we prepare for year-end and look ahead to 2027.

For us at Delmarva Financial Group, we want to emphasize three simple habits that we believe serve clients well:

•     Clarity over complexity
•     Process over predictions
•     Proactive communication

This quarter, our team launched the Client-First Collaborative Framework, a technology-enabled service model designed to replace isolated advisor workflows with coordinated, team-based responsibility for each client relationship.

• The Initiative: We reorganized our advisory practice into an integrated hub where a specialized seven-person team jointly manages every client relationship.
• The Innovation: We combined behavioral-finance coaching with scenario-based analytics to model potential outcomes. The interactive simulations transform static plans into adaptable roadmaps, helping clients assess tradeoffs and adjust strategies as markets, goals, and circumstances evolve.
• The Integration: We connected our internal wealth-management team with an established network of estate-planning and tax specialists, giving middle- and upper-middle-income families and small-business owners coordinated financial oversight and enhanced overall experience.

By combiningbehavioral financial advising, modern simulation tools, coordinated access to specialists, enhanced education, and high-touch human guidance, the framework provides each client with a personalized financial roadmap that can evolve with changing goals, markets, and life milestones.

DFG Team Updates:

The third quarter was a busy and productive period for our team. We continued investing in the people, processes, and tools that support consistent service today while preparing DFG for the future.

Beau and his family remain grateful to the many clients who reached out following his mother’s stroke in May. After returning home from rehabilitation at the end of July, she has resumed several day-to-day activities, including attending church and spending time with friends and family. Beau appreciates your patience and support as he balances responsibilities to his parents, wife, and three children. He continues to lead the team each day as DFG advances its primary 2026 initiative, the Client-First Collaborative Framework.

Kelly Rodowsky joined DFG in summer 2026 as Brand Ambassador, focusing on brand awareness, client education opportunities, and community engagement in support of the Client-First Collaborative Framework. Her role does not include direct client service, wealth management, or financial planning.

Kelly brings to our team 20 years of experience across the education, legal, and nonprofit sectors. A Broadneck High School graduate, she earned a Bachelor of Science in History and Social Sciences with a minor in Political Science from Towson University in 2003, a Master of Science in Curriculum and Instruction with a focus on Leadership from McDaniel College in 2006, and the Project Management Professional certification from the Project Management Institute in 2025. Kelly lives in Foley, Alabama, with her husband of more than 20 years, Joe. She has served on a nonprofit board and volunteered with several community organizations. In her free time, she enjoys baking sourdough bread, traveling, and embracing the Gulf Coast lifestyle.

Michael McGuire continues to grow in his role as Associate Financial Advisor. During the quarter, he completed a six-month Jump Start Financial Advisor training program through Osaic. He assumed more responsibility for day-to-day client service, planning discussions, and meeting support while remaining in close communication with Beau regarding client planning and investment strategies. Clients may continue to see Michael joining or leading selected calls, virtual meetings, and in-office reviews as part of DFG’s team-based service model.

Michele Shipley has continued settling into her Client Service Associate responsibilities since joining DFG at the end of the first quarter. Many clients have now worked with Michele by phone, email, or during an office visit. Her prior paralegal experience, attention to detail, and commitment to service have made her a valuable addition as she oversees many of the day-to-day responsibilities previously handled by Jenna Carey.

Jenna Carey remains an integral member of the DFG team as she enters her 15th year with the firm. Working part-time remotely as Team Operations Manager, she supports people operations and oversees payroll, benefits, and administrative matters while spending more time with her husband and two young sons at their home in Pennsylvania.

During the summer, Colin Gray supported the team as an intern focused on research and client service. His internship reflected our commitment to providing practical opportunities for students interested in financial services and developing future talent for the profession. We appreciated the perspective he brought from his Business Management and Economics studies at Washington College. Colin returned for his senior year in August and plans to rejoin us during winter break before beginning his final semester in spring 2027.

Duke Hunt has been a valued member of the DFG team since 2022, serving as Wealth Advisor. He specializes in developing wealth management strategies for retiring professionals and current retirees. Licensed since 1994, Duke holds the Series 7, 24, 31, 63, and 65 registrations; the CFP® and ChFC® professional designations; and life, health, and variable insurance licenses. His approach emphasizes retirement-income planning, risk management, cost awareness, client education, and a thorough review of available options so clients understand the strategies supporting their portfolios. An Annapolis native, Duke, earned a bachelor’s degree in economics from the University of Maryland, College Park, and a master’s degree in finance from the University of Baltimore. He enjoys spending time with his wife, their three children, and their granddaughter. Duke remains active in his local parish’s Knights of Columbus and supports the Coastal Conservation Association, the Oyster Recovery Program, and the YWCA.

Our team remains dedicated to providing transparent guidance, reliable service, and timely updates. We believe these principles are fundamental to building lasting partnerships and helping you navigate your financial journey with confidence.

With those updates in mind, we turn to the economic, fiscal-policy, and market themes that may affect financial planning and client portfolios.

Q3 2026 Market Summary & Outlook

Q3 2026 Market Recap: Resilience Through Seasonal Headwinds

The third quarter of 2026 reflected continued resilience in the broad economy and equity markets. Following a strong second quarter, markets entered a period of modest consolidation and range-bound trading. Despite historically weaker seasonal conditions in September and continued global supply uncertainty, equities remained comparatively stable during the quarter.

The S&P 500 closed the third quarter at 7,651.54, reflecting a modest quarterly gain of roughly 2.03% following Q2's 13.9% surge.While top-line index returns were subdued compared with the first half of the year, corporate earnings growth remained robust, and the market successfully weathered higher long-end interest rates and persistent headline inflation.

Key Market Themes During the Quarter

•      Broadening Beyond Mega-Cap Tech:While the primary AI infrastructure narrative—semiconductors, hardware, and power grids—continued to support earnings, performance leadership began to show signs of broadening. A narrower rally in select mega-caps gave way to rotational interest across small-cap equities, selective defensive plays, and international markets.
•     Sticky Inflation and Central Bank Patience: Supply-chain dynamics and elevated energy prices kept headline inflation near 3% throughout the quarter. Rather than initiating aggressive rate cuts, the Federal Reserve maintained a cautious stance.Markets adjusted their expectations to reflect a more prolonged “higher-for-longer” interest-rate environment, with minimal easing expected before year-end.
•     Labor Market and Consumer Equilibrium:The U.S. labor market demonstrated surprising durability, with payroll growth remaining steady.High-income consumer spending held steady, while lower-income segments remained more price-sensitive, reinforcing a divergent consumer landscape that continues to favor companies with resilient, high-quality balance sheets over consumer-discretionary retailers.

   Sector Performance Highlights

   Aggregate earnings for the S&P 500 continued their upward trajectory in Q3, backed by strong double-digit growth expectations.However, sector dynamics reflected a cautious market digesting year-to-date gains:

Q4 2026 & H1 2027 Market Outlook: Constructive Discipline

As we enter the final quarter of 2026, our macroeconomic outlook remains cautiously optimistic. Although fourth quarters have historically provided a seasonal tailwind for equity markets following positive mid-year performance, historical patterns do not guarantee future results. Persistent interest-rate pressure and geopolitical uncertainty continue to support a disciplined, risk-aware portfolio approach.

The observations and portfolio themes below are general in nature and are not intended as individualized investment, tax, or legal advice. Any planning or investment decisions should be evaluated in light of each client’s circumstances, objectives, and risk tolerance.

Strategic Portfolio Themes for Q4 and Beyond

1. Expanding the Quality Screen: High valuation multiples in index-heavy mega-caps mean stock selection is critical. We continue to emphasize companies with strong free cash flow generation, low debt-refinancing risk, and pricing power that can protect margins in a sticky-inflation environment.
2. Capitalizing on AI Value Chain Spread: Beyond pure-play chipmakers, we are focusing on secondary and tertiary beneficiaries of technology modernization—including industrial automation, grid infrastructure, corporate software integration, and specialized real estate.
3. Optimizing Fixed-Income Yields: With benchmark yields offering competitive income streams, fixed income continues to play a core role in risk management. We maintain a high-quality corporate bias with intermediate-duration positioning to capture elevated yields while helping mitigate yield-curve volatility

Closing Client Note

Periods of market consolidation, such as the one observed in Q3, can feel uneventful after rapid gains. They may allow valuations to realign with underlying earnings and market leadership to broaden beyond a small group of companies, although future market direction remains uncertain. Our focus remains on your long-term goals, disciplined asset allocation, and deliberate risk management as new opportunities emerge in the months ahead.

Year-End Planning

As year-end approaches, please contact us if you have experienced a meaningful change involving your family, employment, cash flow, taxes, estate plan, or financial goals. An early conversation gives us time to evaluate whether planning or portfolio adjustments may be appropriate before year-end.

Thank you for trusting Delmarva Financial Group as your wealth management firm. We remain committed to proactive communication, disciplined planning, and helping you Grow the Life You Want as we finish 2026 and prepare for the year ahead.

Best wishes,

Beau Breeden, BFA™
Managing Partner & Wealth Advisor
Delmarva Financial Group

Important Information: The information and portfolio themes presented are for general educational purposes and are not intended as individualized investment, tax, or legal advice or as a recommendation to buy or sell any security or adopt a particular strategy. Any recommendation from Delmarva Financial Group will be based on your individual circumstances, objectives, risk tolerance, time horizon, liquidity needs, tax considerations, and other relevant information available at the time. Recommendations may differ among clients. Investing involves risk, including the possible loss of principal, and past performance does not guarantee future results. Please consult your DFG financial professional before taking action and seek guidance from qualified tax or legal professionals regarding your individual circumstances.