Expect markets to do well going into 2026, especially growth trade: BMO's Schleif

Market Outlook for 2026 - The market indicates positive underlying economic factors despite business challenges in the current year [2] - Broadening market trends are expected to continue, benefiting growth stocks into 2026 [3] - Momentum heading into the new year is strong, supported by earnings and a potentially stable or easing Federal Reserve policy [4] - Confusion around market leadership (Mag 7 vs broader market) is expected to persist, requiring focus on earnings and Fed policy [9] Historical Context & Potential Risks - The average bull market lasts about five years, suggesting the current one is still relatively early [6] - Stocks have only risen for four consecutive years with double-digit percentage gains once in the last 100 years, highlighting potential for a market correction [10] Supporting Factors - Constructive elements from a major bill passed this summer are beginning to materialize [7] - Clarity around tariff policy, consumer-related factors (back tax refunds), and deregulation efforts are expected to support business growth [7] - Fundamental underpinnings and earnings are supporting current valuations [8]