Expect At Least Two Market Corrections In 2026 | Lance Roberts

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Jan 10, 2026

Lance Roberts, a seasoned portfolio manager from RealInvestmentAdvice, shares insights on future market corrections, predicting at least two 5-10% drops in 2026 due to current market conditions. He explores the implications of recent jobs data, GDP growth, and geopolitical surprises on investor sentiment. Additionally, Lance introduces a new factor rotation model while advising cautious investment strategies. He emphasizes the importance of individual country evaluations in international equity investing and warns against the risks of speculative options trading.

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ADVICE

Plan For A Wide Range Of Outcomes

Build portfolio plans that navigate a wide range of outcomes rather than betting on a single forecast.
Use scenario ranges (e.g., S&P 5,500–8,000) and adjust exposures as conditions change.

ADVICE

Use Yielding 'Boring' Stocks As Ballast

Add defensive, high-yield 'boring' names to provide ballast during rotations.
Small allocations to high-yield stocks (e.g., Altria) can reduce portfolio volatility and attract flows during corrections.

INSIGHT

Judge Countries On Their Own Merits

International returns vary widely by region and have lagged the U.S. for 15 years, so 'cheap vs U.S.' is the wrong frame.
Evaluate countries versus their own histories and fundamentals, not U.S. comparatives.

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Given current market valuations and the prolonged bull run stocks have had over the past three years, investors should expect at least two corrections of at least 5-10% in 2026 warns portfolio manager Lance Roberts.But it could easily play out much worse than that, he adds.Lance and I talk about the likely odds, as well as the latest jobs data, GDP growth outlook, retail sales, the potential impact of the rash of geopolitical surprise developments, as well as his firm's latest trades.For everything that mattered to markets this week, watch this video.

WORRIED ABOUT THE MARKET? SCHEDULE YOUR FREE PORTFOLIO REVIEW with Thoughtful Money's endorsed financial advisors at https://www.thoughtfulmoney.com#jobs #marketcorrection #gdp _____________________________________________ Thoughtful Money LLC is a Registered Investment Advisor Promoter.We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.IMPORTANT NOTE: There are risks associated with investing in securities.Investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and other types of securities involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC.Copyright © 2026 Thoughtful Money LLC. All rights reserved.