Schwab Center for Financial Research Reveals Its 2026 Market Outlook
The Schwab Center for Financial Research (SCFR), which provides top-quality research, timely market insights and practical guidance for investors, today announced the release of its 2026 outlook, Schwab's Market Perspective: 2026 Outlook, which delivers insights on the most important market and economic trends that investors should consider for the year ahead.
Schwab's Market Perspective: 2026 Outlook provides perspectives on U.S. stocks and economy, treasury bonds and fixed income, corporate credit, municipal bonds, and international stocks and economy. SCFR also released its 2026 Wealth Management Outlook, which provides guidance on how investors can stay on track in 2026 to help reach their financial goals.
"We believe the macro environment will continue to be unstable given policy crosscurrents and a wobbly labor market, but stocks can likely churn higher given a firmer earnings backdrop. We think rebalancing based on volatility, as opposed to the calendar, makes sense, as will continuing to lean into more profitable segments of the market."
Liz Ann Sonders, Chief Investment Strategist, and Kevin Gordon, Head of Macro Research and Strategy, Schwab Center for Financial Research |
"Overall, we expect 2026 to be another good year of returns for bond investors, but the range of potential outcomes remains wide. We continue to favor a middle-ground strategy—up in quality and intermediate-term average duration—that may help mitigate some of the risks while allowing for potentially attractive returns."
Kathy Jones, Chief Fixed Income Strategist, and Collin Martin, Head of Fixed Income Research and Strategy, Schwab Center for Financial Research |
"We continue to suggest an up-in-quality fixed income bias for the short run, but investors can still consider some of the riskier parts of the fixed income market in moderation. For now, we prefer high-quality investment-grade corporate bonds given their balance of low-to-modest credit risk."
Collin Martin, Head of Fixed Income Research and Strategy, Schwab Center for Financial Research |
"We believe municipal bonds will continue to offer attractive tax-adjusted yields in 2026, while credit quality should remain stable. In our view, munis can be an attractive investment option for investors in higher tax brackets looking for relatively conservative investment options and we don't expect that to change in the near future."
Cooper Howard, Director of Fixed Income Research and Strategy, Schwab Center for Financial Research |
"International stocks could be poised for another strong year in 2026 due to a cyclical sector orientation that could benefit from an acceleration in global growth, earnings growth accelerating and catching up with the U.S., attractive valuations, and the potential for dollar weakness that benefits returns for U.S. investors."
Michelle Gibley, Director of International Equity Research and Strategy, Schwab Center for Financial Research |
"With interest rates stabilizing, inflation trending toward target ranges, and volatility reverting to long-term norms, investors who anchor decisions to true time horizons rather than short-term noise continue to make more rational, durable choices that are affected less by emotions."
Rob Williams, Head of Financial Planning and Wealth Management Research, Schwab Center for Financial Research |
Learn more about Schwab's Market Perspective: 2026 Outlook and 2026 Wealth Management Outlook.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients' goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on Twitter/X, Facebook, and LinkedIn.
Disclosures:
The information here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation.
Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.
Investing involves risk, including loss of principal. International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, political instability, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.
Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third parties, and Charles Schwab & Co., Inc. does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.
The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions.
The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.
The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.
The Charles Schwab Corporation provides a full range of brokerage, banking and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co. Inc. (Member SIPC), and its affiliates offer investment services and products. Its banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides deposit and lending services and products.
1225-LJZ1
View source version on businesswire.com: https://www.businesswire.com/news/home/20251217432927/en/
Aven Wright
Charles Schwab
682-252-9821