In our Weekly Market Commentary on November 17, we previewed our Outlook 2026 publication, due out on December 9. We highlighted several keys for markets next year, covering the U.S. economy, stocks, and bonds. This week, we broaden our preview and tease some other factors investors will want to consider when thinking about investing in 2026.  

Quick Recap 

First, here’s a summary of the keys to 2026 that we covered in our previous Outlook 2026 teaser on the U.S. economy, stocks, and bonds:

• No recession. In the absence of an economic contraction, stocks have historically delivered gains. LPL R

With just 24 trading days left in 2025 and the S&P 500 up about 14%, a strong year for stocks appears highly likely. If you are skeptical, consider that we’re coming out of one of the best earnings seasons in years by the numbers, the fiscal stimulus from the One Big Beautiful Bill Act (OBBBA) that kicks in after New Year’s is fast approaching, and the holidays are typically favorable for stocks from a seasonal perspective.

Of course, every year is different, but one element of the path for stocks this year that is quite common is the fact that stocks suffered a correction on the way to strong gains. As you can se

Last week’s artificial intelligence (AI) led global equity rout captivated headlines, overshadowing notable developments flowing out of Tokyo. Recently elected Japanese Prime Minister Sanae Takaichi — the pro-growth and pro-stimulus policy lawmaker — and her cabinet approved the country’s largest stimulus package since the pandemic on Friday, totaling 21.3 trillion yen ($135 billion). The announced 17.7 trillion-yen ($112 billion) spending plan is primarily aimed at price relief for citizens and features a three-month gas and electricity subsidy for each household, a cash handout for children, a reduced gasoline tax, a

2025 has been an exceptional year for emerging market (EM) equities. South Korea has surged almost 80%, while South Africa, Brazil, and Mexico have each posted gains of more than 40% year to date. Within the MSCI country universe, six of the top 10 performers this year are emerging markets. This level of outperformance relative to the U.S. at the broad asset class level has been rare and, barring a strong late-year rotation, this will mark only the third time in the past 15 years that emerging markets have outperformed U.S. equities.

EM Equities Have Handily Outpaced U.S. Equities this Year

• Source: LPL Research, Bloombe