Video: August 2026 Economic and Market Outlook

In our August outlook, Partner and Chief Market Strategist Jim Lebenthal walks through why our view of the market remains positive despite key risks. We are carefully watching reactions to a Federal Reserve that’s become harder to read under new Chair Kevin Warsh and ongoing questions about whether massive AI spending will pay off amid growing competition from China. However, the economy continues to grow, the job market remains strong, and corporate profits are climbing sharply, with earnings growth projected at 26% year-over-year. A near-term technical headwind in the Korean stock market from a wave of margin calls tied to major memory-chip makers has rippled into US markets, but the disruption is expected to pass. Overall, we see the opportunities outweighing the risks and expect markets to stay strong through year-end.