Ghabour: "Extremely Bullish" on Markets, Expect Another 20% Rally Into 2026

Market Overview - The market is experiencing a positive start to the week, with the S&P and NASDAQ both up, while the Dow remains unchanged and the Russell is slightly above unchanged [1] - There is a bullish sentiment regarding the continuation of the market rally, particularly in the technology and cryptocurrency sectors, which are seen as leading indicators [2][3] Market Predictions - The market could potentially rise by at least 20% by 2026, drawing parallels to the internet boom of the late 1990s, with the current AI boom being a significant factor [4][5] - Despite short-term overbought conditions, dips in the market have been shallow and aggressively bought, indicating a strong upward trend [6] Federal Reserve Influence - The Federal Reserve is expected to cut interest rates in a non-recessionary environment, which is viewed as a favorable setup for market growth [7] Bubble Concerns - There is acknowledgment of the AI bubble, which is expected to grow larger before it eventually bursts, prompting a proactive approach to risk management [8][9] Investment Strategy - A strategy of buying the dip is recommended rather than a buy-and-hold approach, especially in technology stocks, which are likely to be hit hardest when the bubble bursts [10][12] - Diversification is advised, with suggestions to include gold and defensive sectors such as utilities, staples, and healthcare [11][12] Sector Performance - Small caps have been outperforming the S&P over the last three months, and this trend is expected to continue, along with financials benefiting from a lower interest rate environment [14][15] - Consumer discretionary stocks have also been increased in the portfolio, indicating a broadening of investments beyond just high-flying tech stocks [15] Investment Vehicles - ETFs are preferred for small cap investments due to their volatility, with specific holdings like IWM being utilized for exposure [16]