Balanced portfolios have generally experienced a smooth ride this year, with global stocks up approximately 13.5% and U.S. bonds down about 2% through 9/30/2026. Bond prices have declined as interest rates moved higher across the maturity spectrum, driven by strong demand for capital from AI infrastructure investment, large federal deficits, and resilient consumer spending. While rising rates create short-term pressure on prices, today’s higher yields may provide a more attractive starting point for fixed income investors than was available just a few years ago. Meanwhile, the S&P 500 has become less expensive relative to projected earnings this year, as earnings expectations have grown faster than prices. If stocks are the offense that drives long-term growth, bonds remain an important source of income, diversification, and risk management when market conditions change.