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

Q1 2026 in Review and Q2 Market Outlook

Stock Sector Outlooks: Morningstar’s Top Q2 Picks Across the Market

Got a question for Dave? Send it to themorningfilter@morningstar.com.

You can follow Dave Sekera on X (@MstarMarkets) and on LinkedIn (Dave Sekera) to subscribe to his weekly newsletter and keep up to date with his latest research, and follow Morningstar on Facebook (MorningstarInc), X (@MorningstarInc), Instagram (MorningstarInc) and LinkedIn (Morningstar).

Tune in to The Morning Filter podcast every Monday at 9 am Eastern, 8 am Central. Subscribe to get notified when we post next. Happy Investing!

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Q2 Market Outlook: Why a Stock Barbell Strategy Is Ideal for Today’s Market

The Morning Filter

Q2 Market Outlook: Why a Stock Barbell Strategy Is Ideal for Today’s Market