The Quarterly Market Outlook provides investors with our perspective on recent activity in the capital markets. The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, equities, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.
These aren’t short-term predictions. Rather, this is Edward Jones’ perspective on market and economic topics designed to help you make decisions affecting your long-term financial strategy. As you read through each topic, you'll find specific actions you can discuss with your financial advisor.
Looking back at the first quarter
The conflict in Iran drove oil prices sharply higher and triggered global market volatility in the first quarter. U.S. large-cap stocks lagged, while cyclical and commodity-sensitive equities outperformed.
Canadian outlook
The Canadian economy has started 2026 on a sluggish footing. A burst of energy price inflation will add another near-term headwind but we continue to look for a pick-up in activity later this year.
Equity outlook
For both Canadian and U.S. markets, leadership in the first quarter of 2026 came from the energy and materials sectors, given the onset of the Iran crisis and higher oil prices.
Fixed-income outlook
The Bank of Canada (BoC) is at the end of its easing cycle and willing to look through a temporary rise in inflation. The Fed's easing cycle appears set to slow, contributing to higher bond yields. On a positive note, higher yields improve income potential, the primary driver of bond returns.
International outlook
Overseas equities began the year with strong momentum, but the escalation of conflict in the Middle East has introduced uncertainty and reversed their outperformance relative to Canadian and U.S. stocks.
Private credit: Headlines are loud, but fundamentals remain sound
Recent media coverage has intensified concerns about liquidity in private credit, contributing to higher redemption requests across several evergreen private credit funds.
Strategic asset allocation guidance
Our Strategic Asset Allocation represents our view of balanced diversification for the fixed income and equity portions of a well-diversified portfolio based on our outlook for the economy and markets over the next 30 years.
Quarterly market outlook - Full report from Edward Jones
Download the entire quarterly market outlook report here.
Important information:
This content is provided as general information only and should not be interpreted as specific recommendations or investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation.