#stockmarketoutlook #economicoutlook #stockpicks We expect volatility to persist in 2026 and recommend balancing undervalued growth stocks with high-quality value stocks. In this bonus episode of The Morning Filter podcast, co-host and Morningstar chief US market strategist Dave Sekera and Morningstar chief US economist Preston Caldwell share their new outlooks for the market and the economy. Tune in to find out whether the market is undervalued today, which sectors hold the best opportunities, and what stocks make Morningstar analysts’ top picks list. Sekera also explains why he thinks a value-growth barbell strategy can win in 2026 and how to execute it. Caldwell covers when he expects GDP growth to reaccelerate, why worries about the K-shaped economy are overdone, and how long he thinks it’ll be before the Federal Reserve cuts interest rates again. The episode concludes with a bond-market outlook, including whether the worst is behind the private credit market. Episode Highlights Why we think a barbell approach to US stocks make sense today. Which parts of the US stock market look most undervalued. Why we expect volatility to persist in 2026. Morningstar’s updated forecasts for GDP growth, inflation, and interest rates. Our take on the bond market. Read about topics from this episode. 33 Undervalued Stocks to Buy in a Volatile Market https://www.morningstar.com/stocks/33-undervalued-stocks-buy-volatile-market Q1 2026 in Review and Q2 Market Outlook https://www.morningstar.com/markets/q1-2026-review-q2-market-outlook Stock Sector Outlooks: Morningstar’s Top Q2 Picks Across the Market https://www.morningstar.com/markets/stock-sector-outlooks-morningstars-top-q2-picks-across-market Got a question for Dave? Send it to themorningfilter@morningstar.com. Follow us on social media. Dave Sekera on X: @MstarMarkets https://x.com/MstarMarkets Dave Sekera on LinkedIn: https://www.linkedin.com/in/davesekera Facebook: https://www.facebook.com/MorningstarInc/ X: https://x.com/MorningstarInc Instagram: https://www.instagram.com/morningstarinc/?hl=en LinkedIn: https://www.linkedin.com/company/morningstar/posts/?feedView=all Watch The Morning Filter podcast every Monday at 9 am Eastern, 8 am Central. Subscribe to get notified when we post next. Happy Investing! This episode is sponsored by Vanguard: https://advisors.vanguard.com/engagement/fixed-income