What's in Store for Markets in 2026? | The Informed Investor 28

Episode 28: Many stock market pundits are forecasting rewarding returns in 2026. Should you act on their predictions?

On the other hand, should you get out of the market based on doom-and-gloom warnings about the US economy?

It's tempting to think someone out there has a crystal ball. But it may be more worthwhile to consider the point of predictions.

Forecasts for the stock market and the economy get people talking. Headline writers in the media are looking to stir up interest. They often exaggerate the apparent likelihood of a greed- or fear-inducing outcome.

Accordingly, you can find a prediction for almost any outcome, good or bad.

Some headlines claim the US stock market will keep rallying after three straight years of double-digit gains. Others argue a bear market is just around the corner.

Bitcoin will hit $250,000 this year, screams a recent headline. But then there's one insisting the most popular cryptocurrency will collapse to $10,000.

Still another headline claims the job market will suffer from "uncomfortably slow growth" in the first half before rebounding later in the year. Talk about hedging bets.

The point is that predictions for 2026 (and every year) are all over the map. That doesn't mean they'll be wrong, but there simply is no way to know which ones will be right.

In Episode 28 of The Informed Investor, Dimensional's Mark Gochnour, Head of Global Client Services, Wes Crill, PhD, Senior Client Solutions Director, and Jake DeKinder, Head of Client Communications, dig into the headlines predicting how the market and economy will perform this year and try to suss out what, if anything, investors can learn from the prognosticators.

LINKS FROM TODAY'S EPISODE:

The Informed Investor Feedback Survey https://www.dimensional.com/us-en/informed-investor-survey

The Informed Investor, Episode 11, "Do Private Markets Deliver an Edge?" https://www.youtube.com/watch?v=TUGb1LLeB1A&list=PLCyJr6FFig-h1mA7rVP7Mbk0irFw2wA90&index=18&pp=iAQB

The Informed Investor on YouTube https://www.youtube.com/playlist?list=PLCyJr6FFig-h1mA7rVP7Mbk0irFw2wA90

Dimensional Fund Advisors Shorts on YouTube https://www.youtube.com/@dimensionalfundadvisors/shorts

Mark Gochnour on LinkedIn https://www.linkedin.com/in/mark-gochnour-9a23598a/

Wes Crill on LinkedIn https://www.linkedin.com/in/wes-crill-77a49417/

Jake DeKinder on LinkedIn https://www.linkedin.com/in/jake-dekinder-cfa-4105b98/

Learn more at https://www.dimensional.com/