Novak Household · Month-End Review
June 2026 Portfolio Commentary
As of June 30, 2026 · Sterling Trust Brokerage accounts ending 7734 & 2261
Household Total
$1,800,000
+$26,700 (+1.5%) vs. May · no flows
Sterling Trust statements, Jun 30, 2026
Cash Position
4.4%
$79,400 vs. 3% policy maximum
Above MaximumSterling Trust statements, Jun 30, 2026
Equity Allocation
75.4%
vs. 80% target · at the floor of the 75–85% band
Sterling Trust statements, Jun 30, 2026
In the live product, a citation like this one opens the source document. Here it's just a label.
Observations & Looking Ahead
- Household investable assets ended June at $1,800,000, up $26,700 (+1.5%) from May's $1,773,300. The gain was entirely market driven; neither account had deposits or withdrawals during the month.
- Cash of $79,400 (4.4%) exceeds the draft policy's 3% maximum (about $54,000 on current assets) by roughly $25,400. Putting that excess to work is the most direct step available.
- Equity of $1,357,300 (75.4%) sits inside the 75–85% band but at its floor, about $82,700 below the 80% target. Redeploying the excess cash into equity would close most of that gap in a single move.
- June's lift came from the broad-market and bond sleeves. The $140,000 QQQ position (7.8% of assets) was the likely drag, with the technology sector down 3.3% for the month as leadership rotated toward value and small caps.
- Ahead: the investment policy worksheet remains a draft pending your sign-off, the proposal comparing the current mix to a recommended allocation is in progress, and with markets pricing a possible Fed rate hike by October, the timing of cash redeployment is worth discussing at our next meeting.
Allocation vs. Draft Policy Worksheet
| Asset Class | Value | Actual | Target | Band | Status |
|---|---|---|---|---|---|
| Equity | $1,357,300 | 75.4% | 80% | 75–85% | In range · low end |
| Fixed Income | $363,300 | 20.2% | 20% | 15–25% | In range |
| Cash | $79,400 | 4.4% | 3% max | — | Above Maximum |
Targets and bands are from the draft investment policy worksheet dated July 8, 2026, which has not yet been reviewed or signed off by the household. Equity here combines U.S. and international holdings.
What Moved the Totals vs. May
| Account | May 31 | June 30 | Change | Return |
|---|---|---|---|---|
| Family Trust Brokerage (7734) | $1,131,400 | $1,150,000 | +$18,600 | +1.6% |
| Rollover IRA — Peter (2261) | $641,900 | $650,000 | +$8,100 | +1.3% |
| Household | $1,773,300 | $1,800,000 | +$26,700 | +1.5% |
All change reflects investment results. June dividends were reinvested: $1,904 (VOO, taxable) and $602 (AGG, IRA), plus money market interest of $277 across the two accounts.
June Market Environment
Equities cooled after a strong spring: the S&P 500 slipped 0.95% following a 15.2% second-quarter gain, and the Nasdaq lagged at roughly –2.8%. Leadership rotated beneath the surface — value beat growth, the Russell 2000 gained 3.7%, and technology fell 3.3% while health care, industrials, and financials led. Bonds were steady, with the 10-year Treasury ending June at 4.44% and the Bloomberg U.S. Aggregate returning 0.24%. The macro picture firmed the case for patience: May CPI accelerated to 4.2% year-over-year, the Fed held rates at 3.50–3.75% in Chair Warsh's first meeting, and markets now price a possible quarter-point hike by October. Against that backdrop, the portfolio's broad-market core and bond sleeve did the work while the growth-tilted holdings sat out the month.
Market data: Angeles Investment Advisors, June 2026 Global Market Index Performance; YCharts Monthly Market Wrap; Madison Investments Monthly Market Update; Janus Henderson; Federal Reserve; BLS via Yahoo Finance. Account data: Sterling Trust Brokerage statements, May and June 2026.