History shows investors are right to worry about 2026 being a bad year for U.S. stocks

DataTrek Research warns that investors are simultaneously facing all three historical drivers of particularly bad market years since 1928 amid the Iran conflict, substantially increasing downside risk for equities. The confluence is producing a risk-off posture and higher volatility that could materially amplify equity drawdowns across portfolios.

Analysis

DataTrek Research warns that investors are simultaneously facing all three historical drivers of particularly bad market years since 1928 amid the Iran conflict, substantially increasing downside risk for equities. The confluence is producing a risk-off posture and higher volatility that could materially amplify equity drawdowns across portfolios.