LPL Research
Presents Outlook 2026

Published annually (with a midyear update), the LPL Research Outlook brings together data-driven forecasts, economic insights, and investment perspectives to help you, an advisor, guide your clients through uncertain markets and uncover opportunities across asset classes.

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2026 Outlook:
The Policy Engine

In 2025, markets haven't followed the usual script. Instead of being driven by fundamentals or the traditional business cycle, both fiscal and monetary policy decisions played a much bigger role.

So what does that mean for 2026?

  • Patience will matter. Markets driven by policy and momentum can lead to sharper, more frequent swings.
  • Policy could be a tailwind. Supportive conditions may continue, giving both markets and the Federal Reserve (Fed) room to ease further.
  • Earnings will need to deliver. Corporate results can help support markets, but there’s less margin for error.
  • Core bonds may quietly add value. A more dovish Fed could make them an important, and often overlooked, part of the mix.
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"As fundamentals have taken the back seat, policy decisions have emerged as one of the most impactful forces driving market direction."

Marc Zabicki

Chief Investment Officer, LPL Research

2026 Market
Outlook Highlight

 

Economy

A modest slowdown may start the year, with growth picking up as 2026 progresses.

 

Stocks

The bull market may continue, supported by AI momentum and a more accommodative Fed.

 

Bonds

Elevated yields continue to make bonds a compelling source of income.

 

Alternatives

Diversification remains key, with alternative strategies helping navigate shifting market conditions.

 

Currencies

The dollar’s longer-term strength remains in focus, supported by tech leadership and pro-growth policy.

 

Commodities

We stay constructive on commodities, while watching uncertainty around global trade and policy shifts.

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*As of May 2026

**As of Annual Outlook Report 2026

Disclosure

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All index data from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This research material has been prepared by LPL Financial LLC.

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May Lose Value