“Our Annual Forecast: There will be no forecast.”
With Wall Street strategists publishing their market forecasts for 2026, we are intrigued by the fact that not one of them thinks the S&P will decline in the coming year. While the underlying market structure, as we measure it, is in agreement with that rosy forecast, the unanimity of bullishness has us on guard.
The issue remains that most stocks are simply not joining the party, and largely haven’t since the 2022 bottom. This divergent condition actually got worse this past month, as we warned it might in November’s video. Still no reason to be bearish, particularly for the popular averages, but worth keeping an eye on for sure.
For now, we remain bullishly positioned in cyclical groups and stocks, but with a healthy dose of short exposure in market laggards.
