RBC Global Insight - April 2026
This report examines global equity market prospects amid the Iran war crisis. The conflict has disrupted oil and LNG shipments through the Strait of Hormuz, driving inflation and threatening central bank rate cuts worldwide. While the U.S., Canada, and China are expected to avoid recession, Europe and Asia face greater risks. Despite near-term volatility and a likely 20% correction (typical for U.S. midterm election years), the report advises maintaining equity exposure. S&P 500 earnings forecasts remain strong at $323 (2026) and $377 (2027), with recovery expected once conflict clarity emerges. Historical patterns suggest corrections in midterm years typically recover to new all-time highs.
This report examines global equity market prospects amid the Iran war crisis. The conflict has disrupted oil and LNG shipments through the Strait of Hormuz, driving inflation and threatening central bank rate cuts worldwide. While the U.S., Canada, and China are expected to avoid recession, Europe and Asia face greater risks. Despite near-term volatility and a likely 20% correction (typical for U.S. midterm election years), the report advises maintaining equity exposure. S&P 500 earnings forecasts remain strong at $323 (2026) and $377 (2027), with recovery expected once conflict clarity emerges. Historical patterns suggest corrections in midterm years typically recover to new all-time highs.
The Vicic Wealth Management Team
March 31, 2026