The “AI Loser Trade,” the stock market rotation, and the Iran war were the themes that dominated stocks, bonds, and other financial markets during the first quarter. The result was a down quarter for many, with both stocks and bonds mostly in the red, but with pockets of gains in formerly out-of-favor corners of the equity market.

As the second quarter of 2026 gets underway, what’s the outlook for the stock and bond markets? Which stock sectors are most attractive? What should investors do from here? Below are insights and perspectives from analysts and specialists about market performance, individual stocks, sectors, and mutual funds.

Q1 2026 Market Performance and the Economy

As the year began, investors wrestled with the…