Edward Jones Forecasts Positive Returns for Canadian Investors in 2026 Despite Global Uncertainties

Strong Earnings Growth and Economic Rebound Expected to Drive Markets

MISSISSAUGA, ON, Jan. 7, 2026 /CNW/ - Edward Jones Canada has released its 2026 market outlook projecting the potential for positive returns as the bull market enters its fourth year, driven primarily by double-digit earnings growth and improving economic conditions.

The Outlook report anticipates Canadian GDP growth could rebound to approximately 2% by year-end, supported by easing trade tensions, supportive interest rates, and strengthening employment trends. After struggling through trade disputes in 2025, the Canadian economy is positioned for recovery as fiscal stimulus measures take effect.

"Earnings growth will be in the driver's seat for 2026," the outlook states, with all eleven sectors of the TSX expected to deliver positive earnings growth, including an anticipated overall growth rate of 15% for Canadian stocks. Similarly, U.S. markets are forecast to achieve double-digit earnings growth across both technology and non-technology sectors.

The Bank of Canada is expected to maintain its policy rate in the 2.0-2.5% range, having reached the end of its easing cycle, while the Federal Reserve continues gradual cuts toward 3.0-3.5%. This monetary policy environment should support both equity and fixed-income markets.

Inflation is projected to ease gradually toward the Bank of Canada's 2% target, with core inflation expected to cool from around 3% to approximately 2% by late 2026. Canadian unemployment, which peaked at 7.1% in summer 2025, has already fallen to 6.5% and is expected to continue declining as private hiring accelerates.

Global diversification remains a cornerstone of Edward Jones' investment strategy for 2026. The firm anticipates another favourable year for international markets, with fiscal stimulus in Germany supporting eurozone growth, resilient economic activity in Japan, and emerging markets benefiting from Federal Reserve rate cuts.

The scheduled review of the Canada-United States-Mexico Agreement (CUSMA) represents a key focus for 2026. While acknowledging potential volatility, Edward Jones expects the agreement underpinning North American supply chains to remain intact, with deepening of ties in strategic sectors.

The outlook identifies potential risks including artificial intelligence disappointments, renewed trade tensions, inflation surprises, and credit stress. However, the base case scenario calls for steady economic growth, stable interest rates, and rising corporate profits providing a supportive backdrop for financial markets.

For Canadian investors, Edward Jones recommends maintaining globally diversified portfolios, reducing excess cash allocations to capture long-term return potential, and overweighting intermediate- and long-term investment-grade bonds given their income potential.

About Edward Jones Canada 

Edward Jones is a full-service investment dealer which provides a range of investment products, services, and solutions to retail investors. We have more than 870 financial advisors in Canadian communities from coast-to- coast. A member of the Canadian Investment Regulatory Organization and the Canadian Investor Protection Fund, the firm is also a participating organization in the Toronto Stock Exchange. For more information, 
visit edwardjones.ca. 

This material is for informational purposes only and does not constitute investment advice or a recommendation. Market and economic forecasts are based on assumptions and are subject to change.

SOURCE Edward Jones

Media Relations Contact: Darryl Konynenbelt, Edward Jones, [email protected]