January 5, 2026 Investor Insights

Venezuela Oil

January 5, 2026

Enjoy this week's "Investor Insights," a weekly newsletter that highlights the financial news you need and provides tips and tricks for making better investment decisions. 

• Venezuela holds the world’s largest estimated oil reserves—about 17% of global supply—yet production has collapsed since the oil industry was nationalized. Output has fallen from nearly 3.5 million barrels per day in the 1970s (over 7% of global supply) to about 1.1 million barrels per day last year, roughly equivalent to production from the U.S. state of North Dakota. 1
• Most investors assume the primary difference between large-cap and small-cap companies is size, but profitability is also a distinction. Profit margins for the S&P 100 have risen to 15.7%, while S&P 600 small-cap margins remain near 5.9%. *2
• U.S. equities have been resilient despite volatility. Since 2019, the S&P 500 has posted gains in 6 of the past 7 years, including +24.9% (2024), and +19.4% (2025), with 2022 the lone setback at -18.0%. *3
• If history is any guide, 2026 may be less favorable for equities. During midterm election years, the S&P 500 has finished higher only 53% of the time with an average gain of 4.6%, compared with a 78% success rate and roughly 11% average gains in the other years of the presidential cycle. *4

Sources:

1. Reuters – “Venezuela’s Oil and Mining Sectors: Large Potential, Weak Infrastructure”
2. A Wealth of Common Sense – “Animal Spirits: The Best Performing Stocks of 2025”
3. A Wealth of Common Sense – “The Biggest Risk in 2026”
4. Barron’s – “The Stock Market Won’t Be Worth Celebrating in 2026”

*Past performance is not indicative of future performance

Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter. 

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