RBC's Lori Calvasina: Why 2026 Could Be a Bull Market Bonanza

Alright, let's talk about the future, shall we? Because sometimes, after navigating through the ups and downs, the uncertainty that always seems to hang in the air, it’s genuinely refreshing to hear a clear, compelling vision for what lies ahead. And that's precisely what we're getting from Lori Calvasina, the insightful Head of U.S. Equity Strategy at RBC Capital Markets. She's not just cautiously optimistic; she's laying out a robust, well-articulated bull case for 2026, suggesting we could be in for a rather strong showing in the equity markets.

Now, what's really driving this conviction? It's not just wishful thinking, you know. Calvasina’s analysis is rooted firmly in several fundamental pillars that, when pieced together, paint a rather encouraging picture. First and foremost, she's pointing squarely at corporate earnings – and rightly so, because ultimately, that's the bedrock of stock market performance. After a period where companies grappled with inflation, supply chain snarls, and shifting consumer habits, many have become leaner, more efficient. We're seeing a trajectory where earnings growth is poised to accelerate, perhaps even surprise to the upside, as businesses adapt and innovate.

Then there’s the macroeconomic backdrop, which frankly, looks increasingly stable. Calvasina believes we're seeing the fruits of central bank efforts to tame inflation, without, crucially, tipping the economy into a deep recession. This 'soft landing' narrative, which once felt like a pipe dream, is looking more and more plausible. What does that mean for investors? Well, it suggests that interest rates might not need to climb much higher – in fact, we might even see some easing, or at least a prolonged period of stability, which historically provides a very fertile ground for equity valuations to expand.

And let's not forget the consumer. Despite all the headlines, the American consumer has proven remarkably resilient. Employment figures have held up, and while there might be pockets of concern, overall spending power remains robust. This continued demand acts as a vital engine for corporate revenues, providing a stable foundation for growth across various sectors. Calvasina seems to be implying that while some might be looking for cracks, the underlying strength of the economy is perhaps being underestimated by the more bearish factions.

What's particularly compelling about Calvasina's outlook is her ability to weave these threads into a coherent narrative. She's not ignoring potential headwinds, because, let's be honest, they always exist. Geopolitical tensions, unexpected shifts in commodity prices, or a sudden change in economic data could always throw a wrench in the works. But her assessment suggests that the market has either already priced in a good chunk of these risks or that the fundamental positives are simply strong enough to overcome them. The sense one gets is that a significant amount of the 'bad news' is already behind us, making room for a more constructive future.

So, as we cast our gaze towards 2026, Lori Calvasina at RBC Capital Markets is certainly giving us a lot to ponder. Her bullish outlook isn't just a hopeful guess; it's a meticulously constructed argument based on improving corporate fundamentals, a stabilizing macro environment, and a resilient consumer. For those looking to position themselves for the next phase of market growth, her insights offer a very compelling case for optimism.