Coming into 2026, we expected inflation to move closer to the Federal Reserve’s (Fed) 2% target, the Fed to cut rates by roughly 75 basis points (bps), and Treasury yields to drift lower.

LPL Research examines current market and investor sentiment in an effort to gauge current levels of exuberance.

LPL Research examines Warsh’s evolving Fed approach, infrastructure-led growth, and the impact of China demand on oil prices.

LPL Research explains the IPO process, reviews high profile candidates, and provides context on potential market impacts.

LPL Research analyzes bond markets as yields rise, exploring Fed policy expectations, inflation trends, and whether bad news is already priced into Treasuries.

We agree with the consensus view that stock valuations are elevated by traditional measures. But valuations should be considered in the context of the economic regime and earnings environment. Factoring in outlooks for economic growth, inflation, interest rates, and earnings, we are comfortable with the current 21 price-to-earnings ratio (P/E) for the S&P 500 Index…