2026 Outlook: Why Stop Now?

Despite a number of market risks – from tariff threats to weakening labor markets – and a volatile first half of the year, 2025 delivered strong returns across the capital markets. U.S. equities bounced back powerfully from Liberation Day lows and international equity returns were even stronger. Meanwhile, credit markets also generated solid returns and fixed income offered returns notably above the stated yields at the start of the year. As we enter 2026, we see the momentum continuing. While markets may face valuation headwinds – whether it be elevated price-to-earnings ratios, tight credit spreads or interest rates near 2025 lows – there are also potential market catalysts that should continue to support the positive-return environment.

Click to read: December Monthly Portfolio Pulse: 2026 Outlook: Why Stop Now?