Jan 29 • 4 min read
7 Favorite Investing Charts (January 2026)
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Today, I’m sharing 7 of my favorite investing & economic charts from the past month. These charts cover topics such as:
*** Before we dive in, did you catch this week's podcast? 👇 Favorite Charts (January 2026)#1 - The Case for Diversification: New Highs in New Places International markets handily outperformed U.S. stocks in 2025, and the trend doesn’t appear to be slowing. Of the 70 countries tracked by Topdown Charts, 47 have recently reached new all-time highs, the largest number ever recorded at the same time. This matters because much of the last decade was filled with commentary suggesting U.S. stocks were all investors needed to own. And to be fair, U.S. markets delivered excellent returns during that stretch, but there was never a way to know how long that outperformance would last. Market leadership changes, often suddenly and without warning. This kind of rotation is exactly why diversification remains essential: it’s a disciplined way to stay positioned when leadership inevitably shifts. #2 - Sometimes, Markets Are Irrational Here’s a counterintuitive data point: Since “Liberation Day,” small-cap companies with negative earnings have significantly outperformed those with positive earnings. Why has that happened? No one knows for sure. But that’s the point. 😊 Short-term market outcomes are often driven by forces that are difficult, if not impossible, to predict. This is why we don’t try to outsmart markets or chase what appears to be working in the moment. By owning an evidence-based, globally diversified portfolio, we give ourselves exposure to returns that can—and often do—come from unexpected places. #3 - Buybacks and Dividends Continue to Do the Heavy Lifting Good news for long-term shareholders: companies are estimated to have repurchased a record $1 trillion of stock in 2025. Buybacks benefit investors by quietly increasing our ownership stake without requiring any action on our part. With fewer shares outstanding, each remaining share represents a larger claim on future earnings. Dividends tell a similar story. While dividend yields remain historically low, total dividend payments continue their steady, long-term growth trend. For diversified investors, this means quarterly income has grown meaningfully over the past several years—consistently, quietly, and with remarkably little fanfare. » Learn more about stock buybacks and dividend investing. #4 - Earnings and Profit Margins Still Matter If you’re searching for an explanation for the market’s strength over the past few years, earnings and profit margins provide most of the answer. Both have continued to move higher, with profit margins in particular exceeding many expectations. As long as this trend persists, it’s reasonable to expect markets to continue performing fairly well. hat said, it’s important to remember that these cycles do not last forever, and a reversal will eventually come. #5 - Home Sales May Be Stirring Back to Life Real estate touches nearly everyone, which is why a healthy housing market matters. After a prolonged period of sluggish activity, there are early signs of improvement. December home sales rose 5.1%, the strongest reading in nearly three years. One month does not make a trend, but it does suggest that easing mortgage rates may finally be having an impact. It’s an early step, but a welcome one for a market that has been slow to regain momentum. #6 - A Non-Market Reason for Optimism Not all good news comes from financial markets. Thanks to advances in screening and treatment, the five-year survival rate for U.S. cancer patients has reached 70%. Since 1990, this progress has translated into nearly 5 million deaths averted. To put that number in perspective, it’s roughly the population of the Boston metropolitan area. Deaths that don’t occur rarely make headlines, which is why this progress often goes unnoticed. Still, it’s a powerful reminder that in many important ways, the world continues to get better. #7 - Markets Still Climb Walls of Worry Despite a year filled with unsettling headlines, the market reached 46 new all-time highs in 2025. It’s a useful reminder that what dominates the news does not always show up in market prices the way we expect. After the April pullback, few anticipated the speed or strength of the rebound. Yet once again, the market did what it has done repeatedly throughout history and moved higher despite widespread concern. This is why staying invested through uncomfortable periods remains so important. It’s the only way to capture the full range of returns markets have to offer. Bottom LineAs these charts illustrate, there are plenty of reasons for optimism. The companies we own remain healthy, the housing market may be loosening, and by many measures, long-term progress continues. That said, none of this guarantees what lies ahead. The future is uncertain, and it always will be. Fortunately, successful investing has never required predicting the future. Historically, it has required prudent diversification, patience, and the discipline to stay invested through periods that feel uncomfortable in real time. That’s the approach I’ll continue to advocate for, regardless of the headlines. 📚 What I've Been Reading
Thank you for reading! Please reply to this email with comments, questions, and/or feedback. Stay wealthy, Taylor Schulte, CFP® |