What’s Ahead for Stocks this Quarter—and Where to Invest
It is a compact run-through of one research house's positioning views across equities, rates and credit, framed around stock selection mattering more as risks build. The segment on rising yields and private credit strains may be useful context for advisors thinking about fixed income and private credit exposure in client portfolios.
Summary
By the markets & outlook deskIn this bonus episode of Morningstar's The Morning Filter, host Dave Sekera and chief economist Preston Caldwell lay out their stock market and economic outlooks for the fourth quarter of 2026 and into 2027. The description says they cover third-quarter performance, the key risks ahead, which sectors, styles and market caps look attractive versus stretched on valuation, and Morningstar's latest analyst stock picks. They also discuss expectations for growth, inflation and interest rates, the effect of the AI boom on the economy, mega-cap stocks, rising bond yields and worsening conditions in private credit.
- Morningstar's chief market strategist and chief economist give their Q4 2026 outlooks, with a discussion of why individual stock selection is becoming more important.
- The episode covers which sectors, styles and market caps offer opportunities and where valuations look stretched, plus Morningstar's latest analyst stock picks.
- They discuss expectations for economic growth, inflation and interest rates heading into 2027 and how the AI boom is affecting the economy.
- The close covers mega-cap stocks, what is behind the rise in bond yields, and worsening conditions in private credit.
Chapters
From the publisher’s description| Time | Chapter | Length |
|---|---|---|
| Welcome | 2 min | |
| A third-quarter performance recap and where US stocks stand today. | 14 min | |
| The key risks to watch in Q4. | 1 min | |
| Which sectors, styles, and market caps offer opportunities, and where valuations look stretched. | 5 min | |
| Morningstar’s latest list of analyst stock picks. | 1 min | |
| Morningstar’s US economic outlook heading into 2027. | 4 min | |
| What rising rates and growing strains in private credit mean for fixed-income investors. | 24 min |
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