Is Your Advisor Taking Advantage of Almost Record Liquidity? LFG Daily - January 6, 2026

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At Lloyd Financial Group, we’re constantly striving to give you more insight, more clarity, and more confidence when it comes to your money. Our Chief Investment Officer, Colin Symons, now delivers his own daily newsletter, offering deep analysis and a detailed outlook on the ever-changing investment world called Symons Says. Check it out and subscribe if you want a very detailed, daily analysis of the investment world. Colin has amazing content.

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Luke Lloyd, CEO Lloyd Financial Group

Lloyd Financial Group’s Strong Start to 2026 — and a Reminder About Market Environments

The first few trading days of 2026 have gotten off to an energetic start, and we’ve already had a number of clients tell us they “hope the rest of the year looks like the first two trading days.”

While it’s always important to keep early-year enthusiasm in perspective, the opening weeks of the year have been a good reminder of how market environments matter, and why positioning should always be aligned with liquidity, fundamentals, and risk tolerance — not headlines or hope.

Liquidity Still Matters

One of the defining characteristics of the current market backdrop is ample liquidity in the system. When liquidity is abundant and financial conditions are not overly restrictive, capital tends to flow more freely toward growth, innovation, and opportunity.

In these environments, higher-beta areas of the market often respond first and fastest. That doesn’t mean they’re appropriate for everyone, nor does it mean they move in a straight line — but it does explain why select growth-oriented names can see outsized moves when conditions align.

Recent Market Moves We’ve Discussed Publicly

Earlier last week, several stocks that had been discussed on financial media (Seen above)— including names like AeroVironment (AVAV), MercadoLibre (MELI), and Blue Owl Capital (OWL) — experienced notable gains in a short period of time.

It’s important to be clear:

• These moves are not guarantees of future performance

• Short-term market action should never be confused with long-term outcomes

• Individual securities experience volatility, often in both directions

  
  

That said, these examples help illustrate a broader point: when liquidity is present, investors tend to reward companies with strong business models, clear growth drivers, and exposure to long-term secular trends.

Higher Beta Isn’t About Speculation — It’s About Context

At Lloyd Financial Group, we don’t view higher-beta positioning as speculation for speculation’s sake. Instead, it’s about context.

When:

• Liquidity is flowing

• Credit markets are functioning normally

• Risk appetite is improving

• The economy is still expanding

  
  

…markets often favor companies and sectors with higher sensitivity to growth and capital availability.

That doesn’t eliminate risk — but it does change the risk/reward equation.

Just as importantly, higher-beta exposure should always be:

• Intentional

• Sized appropriately

• Integrated within a broader, diversified plan

  
  

Why Discipline Still Wins

Strong starts are encouraging, but discipline is what carries investors through full market cycles.

Our focus remains on:

• Aligning portfolios with each client’s goals and time horizon

• Managing risk, not chasing returns

• Adjusting positioning as conditions evolve, not reacting emotionally

  
  

Markets will have strong days, weak days, and everything in between. The goal isn’t to predict every move — it’s to stay positioned intelligently through changing environments.

Final Thought

The early days of 2026 have offered a constructive reminder: liquidity-driven markets tend to reward preparedness.

While no one can control market outcomes, investors can control:

• Their process

• Their discipline

• Their long-term strategy

  
  

At Lloyd Financial Group, that’s exactly where our focus remains as the year unfolds.

Don’t leave your financial future up to chance. Let’s build a plan that gives you confidence today and peace of mind for tomorrow. Click here to schedule a meeting — I’m here to help you take the next step toward financial freedom.

Colin Symons, CIO Lloyd Financial Group

For what it’s worth, I still think there’s a lot of room for more gains to come, to an extent that’s likely to surprise people. There’s room for credit spreads to get better, and the liquidity spigot only recently got turned back on. I’ve spent a lot of time talking about that, though, so I wanted to talk about a different reason to be bullish-- the dollar.

The fact of the matter is that most of the developed world was much quicker to cut rates than the US was, and is essentially done with cuts, barring surprise economic weakness. The US, however, has been much slower, and those cuts are likely to weaken the dollar.

A weaker dollar isn’t universally good, as it makes the return on US assets for foreign holders worse. If that gets too bad, foreign holders may stop buying US assets or sell, all of which would hurt returns. Assuming that doesn’t happen, though, it usually means that risk assets do well, admittedly in part due to dollar devaluation. That still beats just owning dollars, though.

We saw that last year. The S&P 500 may have been up 17.9%, including dividends, but more than half of that was eaten by the dollar falling 9.4% (below,) the worst loss since 2017.

Holding stocks was a far better choice than holding the dollar, but a good chunk of the gain was that the value of your business held up far better than the dollar.

For now, that’s likely to continue. Rates and currencies are basically the flip side of the same coin. If one currency is expected to keep rates level, their currency should stay steady, ceteris paribus. On the flip side, if a new Fed head is expected to come in and drop rates, that will encourage the currency to decline.

I readily admit that’s an oversimplification, and this can definitely go wrong if things move unexpectedly. In general, though, if nothing breaks, the dollar is likely to get weaker and you’re going to want to own risk assets that can withstand that weakness. If you’re wondering if foreign stocks can do even better, the basic answer is yes. Given two identical businesses and a weaker dollar, the foreign business would be a better buy.

Again, something is going to break, eventually. For now, though, nothing is broken and there are a lot of opportunities to make money in stocks right now. Just two days into the year, we hold several stocks that are up double digits. This isn’t an environment that’s going to last forever, but it’s good to take advantage of while it’s there. I will continue watching like a hawk to see if things are breaking down, but for now I see more of the opposite situation. Good times can continue.

ISM Manufacturing was weak, at 47.9 vs. exp. 48.4. The unexpected weakness helped lower Treasury bond rates.

The Fed’s Kashkari also helped sink rates by saying the job market is clearly cooling.

Trump said the US may subsidize efforts to rebuild the Venezuelan oil industry.

NVDA had their keynote address at CES, full of AI and robots, but the stock was only up a fraction of a percent. Priced in? In general, reactions to CES announcements were tepid.

S&P PMI and the Fed is apparently purchasing T-bills, today.

What does it all mean? Post-Santa trade is modestly trending up.

Don’t leave your financial future up to chance. Let’s build a plan that gives you confidence today and peace of mind for tomorrow. Click here to schedule a meeting — I’m here to help you take the next step toward financial freedom.

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