Press release
LPL Research Team Releases 2026 Outlook: The Policy Engine
Annual report delivers a data-driven perspective on the economic and market landscape, outlining actionable insights for investors to navigate policy-driven
About this update from Lpl Financial Holdings Inc.
[{"type":"text","content":"Annual report delivers a data-driven perspective on the economic and market landscape, outlining actionable insights for investors to navigate policy-driven trends and volatility\nSAN DIEGO, Dec. 09, 2025 (GLOBE NEWSWIRE) -- LPL Financial LLC today released its 2026 Outlook: The Policy Engine. Reflecting on the second half of 2025 and looking ahead to the new year, this report offers a comprehensive analysis of the economic and market environment, highlighting potential implications for investors and their portfolios in 2026. The 2026 Outlook provides a grounded, data-driven view of where the economy and markets may be headed as we enter the new year. From growth in artificial intelligence (AI) and fiscal policy impacts to evolving interest rates and volatility trends — requiring diversification and agility — LPL’s 2026 Outlook provides actionable guidance for navigating a dynamic investment landscape. “While 2025 was a year of pragmatic optimism for financial markets, it wasn’t without volatility,” said LPL Chief Investment Officer Marc Zabicki. “In 2026, volatility will continue. Encouragingly, we anticipate that policy will provide supportive conditions for markets in 2026. Given the current investment climate, where policy changes and market momentum have a significant influence over fundamentals and valuations, it is important for investors to exercise patience and avoid making impulsive decisions based on short-term market sentiment.” Key Highlights from the 2026 Outlook Policy and Momentum Drive MarketsMarkets in 2026 are expected to remain heavily influenced by fiscal and monetary policy rather than traditional fundamentals. Policy decisions — from interest rate adjustments to government spending — will continue to shape sentiment and market direction. This environment amplifies volatility and makes patience and discipline critical for investors navigating short-term swings.AI Investment and Fiscal Spending Support GrowthEquity markets are likely to extend gains, supported by enthusiasm around AI and a more accommodative Federal Reserve. However, high valuations and the growing concentration of mega-cap technology stocks within major indexes increase sensitivity to company-specific risks. This structural shift means investors should expect more frequent bouts of volatility.Volatility and Concentration Risks PersistLPL Re...