Chart of the Week: Stocks Make New, All-Time Highs

Fri, 01 May 2026 16:37:03 GMT

Why This Chart?

This week I’m spotlighting SPY — the SPDR S&P 500 ETF Trust — as a proxy for the broad U.S. equity market. After a period of volatility driven by macro headwinds, geopolitical tension, and sector rotation, the S&P 500 has pushed through prior resistance to register new all-time highs. While the breakout is technically constructive and suggests underlying market resilience, the durability of this move is far from certain. Several cross-currents bear close watching in the weeks ahead, and I want to share exactly what I’m monitoring so you can stay informed alongside our clients.

Key Themes to Watch

Rally May Be Brief — Iran Ceasefire Fragility: Recent diplomatic efforts produced only a fragile ceasefire in the Iran conflict. Any breakdown in those negotiations could rapidly re-ignite risk-off sentiment, pushing energy prices higher and equity markets lower. The new highs may represent a window of optimism rather than a sustainable trend.
SaaS Sector Remains Under Pressure: Despite the headline index strength, software-as-a-service names continue to lag meaningfully. Elevated interest rates and stretched valuations are compressing multiples across the high-growth software space. Investors rotating out of SaaS into value and dividend-paying names is a headwind that could cap the breadth of any sustained advance.
Watch Consumer Data Against Rising Gas Prices: The American consumer has been the backbone of economic growth, but higher prices at the pump act as a de facto tax on household budgets. Upcoming retail sales, consumer confidence, and PCE reports will be critical tells. If consumer spending shows signs of cracking under the weight of energy costs, the earnings outlook for consumer discretionary and retail sectors could deteriorate quickly.

This Week’s Chart — SPY (S&P 500 ETF)

SPY — SPDR S&P 500 ETF Trust | Daily/Weekly Chart | Source: TradingView

Stay Engaged — Chart of the Week, Every Friday

Markets move fast, and so do the signals worth tracking. Every Friday, I publish a new “Chart of the Week” right here on the Bellaire Capital Management Market Insights Blog — selecting the single chart I believe best captures what investors should be watching in the week ahead. Whether it’s an equity index, a sector rotation, a yield curve move, or a macro data series, the goal is always the same: cut through the noise and put the most meaningful picture front and center.

Bookmark this page and check back every Friday for fresh perspective. And if you’re a Bellaire Capital client with questions about how current market conditions affect your portfolio, don’t hesitate to reach out directly. We’re here to help you stay informed and stay on track.

Kevin Spires, CFA®, CFP®, FRM

Principal, Bellaire Capital Management

Fee-Only | Fiduciary | Independent

BELLAIRE CAPITAL MANAGEMENT | Market Insights Blog

DISCLOSURE: This blog post is for informational and educational purposes only and should not be construed as investment advice. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. Bellaire Capital Management is a registered investment advisor. Please see our Form ADV for important disclosures.

An Introduction to the Alternative Income Asset Class

Wed, 15 Apr 2026 12:39:12 GMT

High-Yield Sector Diversification as a Tactical Complement to Traditional Equity and Fixed Income

What is alternative income?

Alternative income refers to a set of investment sectors that generate above-market yields through structures and exposures that fall outside traditional equity and investment-grade fixed income. Many of these sectors exist specifically because of provisions in the U.S. tax code — Real Estate Investment Trusts (REITs) and Master Limited Partnerships (MLPs) are the most prominent examples. Congress created these pass-through structures to encourage investment in specific areas of the economy: real estate and energy infrastructure, respectively.

What these sectors share is a yield premium that compensates investors for risks that are absent from or lower in traditional asset classes: commodity price exposure, interest rate leverage, credit quality, currency risk, or structural complexity. BCM treats this yield premium as a potential source of tactical return — owning an alternative income sector instead of a more liquid stock or bond position when the risk/reward tradeoff is compelling.

Not all alternative income is alike. Some sectors are simply higher-risk versions of familiar asset classes — high yield debt is corporate credit with more default risk; leveraged loan funds are floating-rate versions of the same. Others are genuinely niche — oil and gas royalty trusts have finite lives, declining production profiles, and virtually no reinvestment capacity. BCM's investment process evaluates each sector on its own terms before deployment.

Every alternative income sector yields more than investment-grade bonds or dividend-paying equities for a reason. BCM identifies four primary sources of yield premium across the alternative income universe:

What drives a higher yield?

BCM's Fiduciary Approach to Alternative Income

Bellaire Capital Management is a fee-only registered investment advisor. We earn no commissions or referral fees from any alternative income product. Every alternative income position is evaluated on its after-tax, risk-adjusted yield relative to available alternatives. We deploy these sectors tactically — only when the yield premium is sufficient to justify the distinctive risks they carry.

The Alternative Income Universe

The following table summarizes the eleven alternative income sectors BCM monitors and may deploy. For each sector, BCM tracks the representative ETF or security, the underlying sub-exposure, any relevant tax structure, and the primary factors that create — and can impair — the yield.

A Note on Risk

Higher yield always means higher risk of some kind. BCM does not pursue yield for its own sake. Every alternative income position must clear a risk-adjusted return threshold relative to its benchmark alternative — typically a broad equity or investment-grade fixed income position. Sectors with structural complexity (CEFs, BDCs) require additional due diligence and receive smaller initial position sizes.

How Bellaire Capital Management Uses Alternative Income - Tactical Deployment

BCM's alternative income positions are tactical — not strategic core holdings. This distinction matters. A strategic allocation to high yield debt, for example, assumes the risk premium is always worth taking. BCM's approach is more selective: we own these sectors when the spread over investment-grade alternatives is wide enough to compensate for the additional risk, and we reduce or eliminate the position when it is not.

The decision to enter or exit an alternative income position is driven by three overlapping assessments: the level of the yield premium relative to historical norms, a fundamental view of the sector's near-term risk environment, and the availability of superior alternatives within the existing portfolio allocation framework.

Tax Efficiency in Taxable Accounts

Several alternative income sectors carry return-of-capital distributions that reduce a client's cost basis over time — effectively deferring taxation until the position is sold. MLPs, oil and gas royalty trusts, and closed end funds frequently exhibit this characteristic. BCM does not specifically flag these sectors explicitly for clients holding them in taxable accounts and incorporates the after-tax yield (not the stated distribution rate) in all return calculations.

Alternative income allocations may not be appropriate for investors who require simple, transparent portfolios, have very short time horizons, or cannot tolerate periodic distributions that fluctuate with commodity prices, credit cycles, or NAV changes.

IMPORTANT DISCLOSURE: This blog is published by Bellaire Capital Management, LLC ("BCM"), a Registered Investment Advisor in Texas and Ohio, for informational and educational purposes only on an "as is" basis, without warranty of completeness, accuracy, or timeliness. Opinions expressed are those of Kevin Spires, Investment Advisor Representative and Managing Member of BCM, and do not constitute investment advice, a specific recommendation, or a solicitation to buy or sell any security, financial product, or service. Readers should consult a qualified financial professional familiar with their individual circumstances before acting on any information presented. BCM assumes no liability for any loss or damage arising from reliance on this content.

Bellaire Capital Management Market Insights Blog