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OUTLOOK 2026 CLIENT LETTER

December 9, 2025 Dear Valued Investor, LPL Research is pleased to present Outlook 2026: The Policy Engine. Their annual update offers a thorough analysis of the economy and markets, highlighting potential implications for you. I’m pleased to bring you a few of the key highlights today. The year 2025 offered a clear illustration of today’s […]

February 2, 2026/by Tracey Meyer

2026 Outlook Executive Summary

Client Letters

READ THE EXECUTIVE SUMMARY HERE READ THE FULL OUTLOOK 2026 HERE SUMMARY : This document presents LPL Research’s outlook for 2026, emphasizing the influence of policy decisions on market dynamics and investment strategies. Market Dynamics and Policy Influence The 2025 market was characterized by volatility driven more by fiscal and monetary policy than by […]

December 18, 2025/by Casey Jurinske

OUTLOOK 2026 CLIENT LETTER

Client Letters

February 2, 2026/by Tracey Meyer

2026 Outlook Executive Summary

Client Letters

December 18, 2025/by Casey Jurinske

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OUTLOOK 2026 CLIENT LETTER

Client Letters

December 9, 2025

Dear Valued Investor,

LPL Research is pleased to present Outlook 2026: The Policy Engine. Their annual update offers a thorough analysis of the economy and markets, highlighting potential implications for you. I’m pleased to bring you a few of the key highlights today.

The year 2025 offered a clear illustration of today’s prevailing market regime — one that has been shaped less by traditional fundamentals and business cycle dynamics and more by fiscal and monetary policy. While policy has always influenced markets, its role has increasingly grown. What does this mean as we look ahead to 2026?

In an environment where policy decisions are one of the most powerful forces steering market direction, LPL Research believes patience is essential. Avoid overreacting to short-term sentiment swings, as policy- and momentum-driven markets tend to produce sharp price fluctuations — which can challenge our behavioral biases. We saw this in 2025, when stock prices swung from policy-induced lows to momentum-driven highs.

The good news: LPL Research anticipates policy will remain a net tailwind for markets in 2026. Short term interest rates are likely to continue easing as economic growth moderates and inflation stays contained. Corporate earnings may provide support, while core bonds quietly offer value (and should benefit from a more dovish Federal Reserve). In addition, given correlations can spike in policy-driven markets, investors may want to consider non-correlated alternative investments as part of a diversified approach.

Several key themes will likely continue shaping the landscape in 2026. Equity markets should remain resilient but vulnerable to volatility, while a fragmented economic backdrop limits clear trends in bonds. Policy decisions in Washington will remain a dominant force, influencing sentiment. The post-pandemic cycle is still distorted, with growth steady yet uneven, inflation persistently above target, and labor markets gradually softening. Add to this the effects of massive fiscal spending, an AI-driven capital investment boom, and more, and the result is an environment that defies traditional patterns. In this setting, diversification and agility are critical.

These are just some of the insights you’ll find in Outlook 2026: The Policy Engine. To get more, including considerations and potential action steps we can discuss, visit go.lpl.com/investoroutlook.

Wishing you a safe and enjoyable holiday season. As always, please reach out to me with questions.

Sincerely,

Wayne Rigney

Important Information

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 data is provided as of December 9, 2025.

All index data from FactSet.

The Standard & Poor’s 500 Index (S&P500) 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.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Past performance does not guarantee future results.

Asset allocation does not ensure a profit or protect against a loss.

This research material was prepared by LPL Financial, LLC.

Not Insured by FDIC/NCUA or Any Other Government Agency

Not Bank/Credit Union Guaranteed

Not Bank/Credit Union Deposits or Obligations

May Lose Value

RES-0006041-0925 | For Public Use | Tracking #830455 | #830456 (Exp. 12/2026)

February 2, 2026/by Tracey Meyer

2026 Outlook Executive Summary

Client Letters

READ THE EXECUTIVE SUMMARY HERE

READ THE FULL OUTLOOK 2026 HERE

SUMMARY : This document presents LPL Research’s outlook for 2026, emphasizing the influence of policy decisions on market dynamics and investment strategies.

Market Dynamics and Policy Influence

The 2025 market was characterized by volatility driven more by fiscal and monetary policy than by traditional fundamentals.
Investors are advised to remain patient and avoid overreacting to short-term sentiment, as policy shifts can lead to significant price fluctuations.
A continued easing of monetary policy is expected, supporting market momentum and potentially benefiting corporate earnings.

Economic Outlook

The U.S. economy is projected to experience a modest slowdown in early 2026, followed by a rebound later in the year.
Resilience from AI-driven investments and fiscal spending is anticipated to offset weaker household activity, steering clear of recession.
A cooling labor market and reduced consumer demand should help ease inflation, with the Federal Reserve expected to gradually cut rates.

Investment Strategies

Stocks: The bull market is likely to continue, driven by enthusiasm for AI and easing monetary policy. However, high valuations may temper gains, with an S&P 500 target range of 7,300 to 7,400. Investors should maintain current allocations and selectively increase equity exposure during pullbacks.
Bonds and Cash: Bonds present attractive income opportunities with elevated yields. Investors are encouraged to focus on income generation rather than price appreciation, as returns on cash are expected to decline with rate cuts.
Currencies: The dollar’s long-term uptrend is respected, supported by big tech leadership and pro-growth stimulus. However, potential monetary easing and trade policy uncertainties may limit upside.
Alternative Investments: Strategies that enhance diversification and mitigate downside risk are favored, including equity market-neutral and discretionary macro approaches. Merger arbitrage and private equity are also seen as beneficial due to increased corporate deal-making.

General Disclosures

The document emphasizes that the opinions and forecasts are general and not tailored to individual investment needs. It highlights the inherent risks in investing, including potential loss of principal and market volatility. Investors are encouraged to consult financial professionals for personalized advice.

December 18, 2025/by Casey Jurinske

Copyright © Rigney Financial Services, LLC. All rights reserved. Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states and territories: AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY

Half Sized Blog Element (Single Author Style)

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OUTLOOK 2026 CLIENT LETTER

2026 Outlook Executive Summary

OUTLOOK 2026 CLIENT LETTER

2026 Outlook Executive Summary

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OUTLOOK 2026 CLIENT LETTER

2026 Outlook Executive Summary

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