With the holiday decorations now back in their storage bins and investment professionals having returned to their desks, it appears that the serious work in the markets for the new year has officially begun. And so far at least, investors seem to have an optimistic outlook for the stock market in 2026 as the sports a gain of +1.76% so far. Not bad. Not bad at all.
Looking at the year ahead, most every Wall Street bank is looking for another strong year in the stock market. Sure, the leadership might look different this year, we’re told. But the bottom line is the consensus view on the street is that stock prices should see healthy gains in 2026.
How is this possible with all the fretting about AI Bubbles, geopolitical events, inflation, and extreme valuations, you ask? Since this is a question I have grappled with myself recently, I thought this might be a good time to review the big-picture fundamental drivers of the stock market.
If I’ve learned anything in my 40+ years of managing other people’s money for a living, it is that although near-term movements in the stock market are nearly impossible to predict, staying in tune with the state of the macro backdrop can go a long way in helping one get the really important moves in the market
2026 Outlook: The Economy, Earnings, and the Bull Case for Stocks
