October 2026 Money Headlines

September has a sketchy reputation for stocks, and this year was no exception. Listening to the TV pundits, you might have thought the market had fallen into the toilet. The actual numbers, thankfully, tell a different story.

September 2026 Performance:

S&P 500: -0.45%

Nasdaq Composite: +1.86%

Dow Jones: -4.29%

Russell 2000: -5.40%

Despite September's mixed results, 2026 has been an excellent year for investors. Through September, the S&P 500 gained approximately 11.8%, the Nasdaq 15.6%, the Russell 2000 12.7%, and the Dow 5.9%.

Not every stock shared in those gains. AI-related companies performed particularly well, while others lagged. That's one reason I prefer investing in broad market index funds rather than trying to pick the winners.

The Economy Keeps Growing:

Despite the gloomy predictions, the American economy keeps moving forward. The Atlanta Fed estimates the economy grew 3.7% during the third quarter. The official numbers aren't in yet, but that's certainly encouraging news!

Nobody can reliably predict where stocks are headed next, regardless of what the television experts tell us. But I'm optimistic about the final quarter of 2026. We shall see!

Important News Item:

Trump Accounts: A Head Start for Young Investors!

Trump Accounts are now available, giving American children a new opportunity to begin building wealth. Children under 18 with Social Security numbers are eligible for these investment accounts. U.S. citizen children born between January 1, 2025, and December 31, 2028, can also qualify for a one-time $1,000 government contribution.

Parents, grandparents, and other eligible contributors can add money, generally up to a combined $5,000 annually. The money is invested in low-cost funds tracking broad U.S. stock market indexes, giving children an opportunity to benefit from long-term market growth. The accounts can now be opened through the IRS, and families can manage them using the new Trump Accounts app. Parents or other authorized individuals must elect to open an account and request the $1,000 government contribution for eligible children.

Parents and grandparents can learn more at TrumpAccounts.gov. Regardless of your politics, this is an opportunity to help the most important people in our lives get an early start on building wealth.

Interesting Financial Research:

Automatic Savings Trap

A 2026 French study found that investors using automatic deposits tended to accumulate less money than those making occasional contributions. Researchers believe automatic savings amounts can become mental anchors. People simply forget to increase their contributions, evenwhen they can afford to save more.

Paying Is Painful!

Ever feel a little sting when you have to part with your hard-earned money? Apparently, your brain may agree! A 2026 study published in the Journal of Economic Behavior & Organization found that higher prices increased activity in a brain region associated with unpleasant feelings. This may help explain why spending money sometimes feels uncomfortable. Credit cards,however, can make spending feel less immediate than handing over cash. Another reminder that managing money involves a lot more psychology than mathematics.

Money Worries Make You Dumber?

Well, temporarily, perhaps! Researchers writing in the 2025 Quarterly Journal of Economics found that financially stressed workers became 7% more productive and made fewer mistakes when they received their pay earlier. The likely explanation? Money worries were consuming mental energy they needed for concentration and problem-solving. Financial stress doesn't just make life miserable. It can interfere with our ability to earn money, too. That's another good reason to build an emergency fund and give yourself some financial breathing room.

Are We Discouraging Young People from Investing?

Here's something parents and grandparents should think about. A 2026 study published in The Review of Financial Studies, involving nearly 8,500 people across 11 countries, found that negative stereotypes about investors can discourage stock market participation. Many respondents viewed investors as greedy, selfish gamblers. What message are we sending ourchildren and grandchildren when we talk about investing? Young people have decades to benefit from the stock market, and we should be encouraging them to participate, not frightening them away. Investing isn't just for wealthy people. It's one of the ways ordinary people becomewealthy.

Scam Alerts: Don’t Get Taken:

The FBI Is NOT Calling for Your Money!

Scammers are spoofing real FBI phone numbers and impersonating federal agents. They may claim you're under investigation or that your money needs to be moved for safekeeping. The FBI will never call demanding money or instruct you to transfer funds to protect them. Hang up! If you're concerned, contact the FBI directly using its official website, fbi.gov.

That Toll Road Text Is Probably a Scam!

Received a text claiming you owe a few dollars in unpaid tolls? Scammers send fake toll notices with links to websites designed to steal your credit card information. Don't click the link! If you think you owe a toll, visit your toll provider's official website directly.

Your Bank's Fraud Department May Not Be Your Bank!

A caller claims someone is stealing money from your account and you must immediately transfer your savings to a safe account. Don't do it! Banks don't protect your money by asking you to send it to another account, buy cryptocurrency, or purchase gift cards. Hang up and call your bank using the number on your card.

Beware of Fake Investment Experts!

Scammers are using social media, messaging apps, and even AI-generated videos to promote supposedly guaranteed investment opportunities. They may impersonate celebrities or financial professionals. Nobody can guarantee high investment returns without risk. Never send money based on an unsolicited investment pitch, and verify investment professionals through Investor.gov.

Until Next Time:

Keep investing, stay focused on your long-term financial goals, and don't let the daily headlines distract you from building wealth. Stay informed, watch out for scams, and don't make it easy for the crooks!

Thank You,

Larry & Lisa Faulkner