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Peter Babilla brings 40 years of experience in investment management and fiduciary* financial consulting to Vertex Planning Partners, LLC.
Pete graduated from Indiana University in Bloomington, Indiana with a Bachelor’s of Science in Finance.
He began his career in 1983 with a focus on institutional fixed-income portfolio management, primarily working with community banks. After a decade serving institutional clients, Pete shifted his focus to working with individuals, families and business owners, providing guidance and education in all areas of Wealth Management. Among his areas of focus are accumulation and retirement planning, investment management, risk management, and estate and wealth transfer.
Pete’s planning philosophy allows him to create a personalized program for clients, based on their own unique goals and circumstances. The extensive investment and planning platform offered by Vertex enables him to create a highly customized program, tailored to each individual client.
Pete and his wife Suzanne have two children, and have resided in Wheaton, Illinois for the past 30 years. He enjoys golf, reading, and traveling with his family. Pete gives back as a past Board Member of the Epilepsy Foundation of Greater Chicago, where his focus is on improving the lives of those living with epilepsy.
Pete works as fiduciary for his clients and holds the CERTIFIED FIANANCIAL PLANNER™ (CFP®) designation and the Chartered Retirement Plan Specialist (CRPS®) designation.
Justin D’Agostino is a Partner and Private Wealth Advisor at Vertex Planning Partners, advising business owners, executives, and high-net-worth families on investments, financial planning, tax and succession planning.
He coordinates the full advisory team around each client to keep tax, investment, and planning decisions moving in the same direction. Justin’s approach centers on rigorous, data-driven analysis — modeling outcomes across planning scenarios so clients can make decisions with clarity.
With over a decade of experience, Justin’s work focuses on:
Justin attended Hillsdale College, where he earned his BA in Accounting and Financial Management. He is an avid sports fan and enjoys spending weekends with his family.
Designations:
Justin does not provide tax or legal advice. He works alongside each client’s CPA and attorney on those matters.
CRPC conferred by College for Financial Planning.
Scott Sandee brings over 20 years of experience to his role as Managing Partner of Vertex Planning Partners, leading the firm’s efforts to assist middle-market business owners and eight and nine-figure families in comprehensive planning. We enable clients to achieve their financial goals by tailoring solutions to their unique aspirations and situations. Leveraging his experience in sophisticated investment techniques and financial strategies with privately held family businesses, supported by extensive post-graduate education focused on exit planning, wealth management, estate planning, investment analysis, insurance planning, risk management, and tax optimization, he:
Scott guides successful entrepreneurs and wealthy families through the transfer of ownership of their privately held companies.
Designations: Certified Financial Planner® Certified Private Wealth Advisor® Certified Investment Management Analyst® Certified Exit Planning Advisor Certified Merger & Acquisition Advisor
Julie Hupp, CERTIFIED FINANCIAL PLANNER™ professional, has worked in the accounting and corporate finance field since 1987. She began her career as a CPA with Deloitte & Touche, specializing in the financial needs of small businesses. Then spent the next 13 years in corporate financial planning and business development at Baxter and TAP Pharmaceuticals. Recognizing her passion for personal financial planning, Julie started her business in 2006 where she focuses on comprehensive financial planning strategies and implementation.
Julie graduated from University of Illinois with a BS in Accountancy. She received her Master’s in Management with a concentration in Finance from Northwestern University’s Kellogg School of Management in 1994.
Outside the office, Julie is the co-founder of the 12 Oaks Foundation, which has merged with Cal’s Angels, and is a former Board member. Julie enjoys cooking, reading, running, triathlons and doing almost anything outdoors. A great weekend is spending time with her husband and two adult kids boating at their lake house in Wisconsin.
Steven P. Franzen, CPA, PFS, CGMA is a public accountant and consultant with more than 23 years of experience helping individuals and businesses reduce their tax liability. He began his career under the guidance of Patrick M. De Sio, CPA, CGMA and in 1996 became Mr. De Sio’s partner in De Sio, Franzen & Associates, Ltd. Steve’s expertise include entity design, complex tax strategies and multigenerational wealth transfer. As Managing Partner, Steve conducts his practice under the philosophy that the client’s investment in their CPA should yield a return on that investment – most of the time that return is realized when working with clients on planning for their future. In an effort to increase the planning capabilities of the firm, Steve formed Vertex Accounting Partners, LLC to ensure their guiding philosophy will continue well into the future.
Steve is a certified public accountant and has earned the professional designations of Personal Financial Specialist and Chartered Global Management Accountant. He is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society. Steve earned a B.S. degree in accounting from Millikin University. He and his wife Kristie live in Sugar Grove, IL with their three children.
Greg Benner advises high-net-worth and ultra-high-net-worth business owners, individuals and families on advanced tax, risk management, retirement, estate planning, and wealth strategies.
As a co-founder of Vertex Planning Partners, he works closely with clients, families, and their professional advisors—CPAs, attorneys, and business stakeholders—to implement thoughtful, durable planning strategies. His approach prioritizes clarity, coordination, and disciplined execution.
For twenty-four years, Greg’s work has focused on designing and coordinating multi-factor, integrated plans involving:
Drawing from his own experience as a founder, business and real estate investor, and multi-generational family business member, he understands some of the challenges that can arise for business owners as they consider an exit. Multi-disciplinary, intentional planning with stakeholder communication creates structure, mitigates risk, addresses tax implications, and preempts issues that can arise.
Greg holds a Master of Science in Taxation, a graduate program that deepened his technical training in federal income taxation, partnership and corporate taxation, estate and gift tax, and tax procedure. This academic work enhances his ability to help families and business owners navigate complex tax environments and align their financial and estate-planning objectives across generations.
Designations:
Licenses:
Greg is deeply committed to lifelong learning and continuous professional development in the areas of tax, estate planning, and private-wealth strategy.
Michael D. Bellis, CFP®, CLU® began his career as a financial planning professional in 1994. His practice is centered on holistic financial planning, astute risk management strategies and empirical, research-driven portfolio construction. He began his career in partnership with his father under the name Bellis & Associates. Together, their practice and reputation for excellence dates back more than 40 years and includes multiple generations of the same families. After his father’s retirement several years ago, Mike continued to build a client-centric, consultative practice before forming Vertex.
Mike holds the CERTIFIED FINANCIAL PLANNER™ certification and is also a Chartered Life Underwriter. He has been an active member of both the Society of Financial Services Professionals and the National Association of Insurance and Financial Advisors. He earned a B.S. in Business & Marketing from Illinois State University. Mike is a lifelong resident of Naperville, Illinois. He and his wife Tanja have three children.
Monthly Market Update for October 2026: AI Volatility, the Fed Hawkish Hold, and Strong GDP Growth
The stock market experienced volatility in October amid strong year-to-date gains. Major indices delivered mixed results for the month, driven by declines in technology stocks. At the same time, the bond market experienced gains in many areas as long-term interest rates pulled back from their recent highs. Overall, these moves were driven by investors reassessing trends around artificial intelligence, interest rates, the Federal Reserve, and more.
Specifically, markets grappled with questions about whether AI investments will generate meaningful financial returns, how higher energy-driven inflation is shaping Fed policy decisions, and whether consumer and business spending can continue to support the broader economy.
These are not new concerns. In fact, many of these trends reflect themes that have both supported markets and occasionally introduced volatility this year. For that reason, maintaining a long-term perspective and avoiding overreactions to short-term movements remains as important as ever.
What drove markets in October, and what should investors keep in mind as they look ahead?
Key Market and Economic Drivers in October
Investors are assessing AI spending amid strong earnings
This drove market swings throughout October since some large tech companies reported negative free cash flow due to these infrastructure investments which once again raises questions about whether investments of this magnitude will generate a sufficient return on investment.
At the same time, this level of spending supports many parts of the economy, including construction firms, electricity providers, equipment suppliers, semiconductor hardware, and more. This is one reason corporate earnings growth has accelerated in recent quarters, as seen in the chart above. Not only has this supported broad market returns and GDP growth, but it has helped to moderate stock market valuations as well. The forward price-to-earnings ratio for the S&P 500, for instance, has improved from a high of 23.3 a year ago to 18.9 today.1
That said, it is worth remembering that AI is only one of many factors driving markets. Technology stocks also tend to be sensitive to interest rates, since their cash flows are projected to occur far into the future. So, trends around long-term interest rates, the Fed’s latest decision, and other factors can affect these sectors and the broader market as well. As investors continue to gauge the long-term economic impact of AI, staying balanced across sectors, styles, and geographies remains an important part of achieving financial goals.
The Fed’s hawkish hold
Against this backdrop, inflation has remained higher than economists and policymakers would prefer. The Personal Consumption Expenditures (PCE) price index rose 0.5% in September and 3.6% from a year earlier. Core PCE, which excludes volatile food and energy prices, increased 0.3% for the month and 3.1% from a year earlier.3 Inflation has now remained above the Fed’s 2% target for 67 months and is near a three-year high.
This is why the Fed’s decision in October to keep its policy rate unchanged at 3.75% to 4.00% has been referred to as a “hawkish hold.” While they did not change the federal funds rate, they are expected to raise rates at the last FOMC meeting this year, and possibly one more time in 2027.4 In fact, the decision to hold rates was based on a 10 to 2 vote, with two FOMC officials preferring to raise rates by a quarter-point.5 The official statement described economic activity as expanding at a strong pace, while noting that additional information would help determine the appropriate policy stance.
Fed Chair Kevin Warsh also announced a change to the Fed’s meeting schedule. The Fed will still meet eight times in 2027, but one meeting will focus exclusively on broader monetary policy strategy, without a rate vote or official statement. While there is no immediate impact on investors, it does mean there will be fewer announcements that the market can react to next year.
Economic growth strengthened despite weak consumer sentiment
This was driven largely by strong consumer spending growth of 2.5% and business investment which rose 3.3%. Government spending only increased 0.9% while net exports fell -3.3%. This is because imports exceeded exports over this period, which detracts from GDP.7
Consumer spending has been strong in recent quarters even though sentiment remains weak. On the one hand, households continue to worry about inflation and the job market, driving their confidence in the economy to historic lows. On the other hand, spending remains strong, possibly due to the overall positive trends in financial markets and low unemployment rates.
Business investment rose sharply in part due to the AI data center buildout. This also explains the drop in net exports since data centers and other AI infrastructure require semiconductor hardware imported from other countries. Combined, these led to a positive jump in economic growth.
Together, these factors reflect a healthy economy with a low jobless rate, but with inflation that remains stickier due to higher energy prices. The reality is that no economic environment is perfect, and investors must always navigate new uncertainties and challenges. Today’s environment is supporting strong earnings growth, which in the long run is positive for financial markets and portfolios. Thus, it’s important for investors to maintain a longer-term perspective and not overreact to news headlines or individual earnings reports.
The bottom line?
October brought volatility due to questions around AI spending, energy-driven inflation, and Fed policy. Staying balanced and focused on long-term goals, rather than reacting to monthly headlines, remains the most important principle for investors navigating today’s environment.
References
Index Descriptions S&P 500
The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The modern design of the S&P 500 stock index was first launched in 1957. Performance prior to 1957 incorporates the performance of the predecessor index, the S&P 90.
Dow Jones
The Dow Jones Industrial Average consists of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
NASDAQ
The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.
MSCI Emerging Markets Index
The MSCI EM (Emerging Markets) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the emerging market countries of the Americas, Europe, the Middle East, Africa and Asia. The MSCI EM Index consists of the following emerging market country indices: Brazil, Chile, Colombia, Mexico, Peru, Czech Republic, Egypt, Greece, Hungary, Poland, Qatar, Russia, South Africa, Turkey, United Arab Emirates, China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan, and Thailand.
MSCI EAFE Index
The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI EAFE Index consists of the following developed country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.
Bloomberg US Aggregate Bond Index
The Bloomberg U.S. Aggregate Bond Index is an index of the U.S. investment-grade fixed-rate bond market, including both government and corporate bonds.
DXY
The DXY is a U.S. dollar index based on a basket of currencies, including the Euro, Yen, Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly.
All investing involves risk, including loss of principal. No strategy assures success or protects against loss. The economic forecasts set forth in this material may not develop as predicted, and there can be no guarantee that strategies promoted will be successful.
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