Market breadth is not happening like we thought it would, says Humilis' Brian Belski

Market Overview - The Dow is approaching a historical milestone, indicating a potentially record-setting day in the market [1] - There is a broadening trend in stock performance, particularly in healthcare and financial sectors, which have shown significant improvement after previous underperformance [2][4] Investment Trends - The expectation is for an "everything rally" to develop, although the broadening of stock performance is not occurring as consistently as anticipated [3] - The focus is shifting back to fundamentals, with an emphasis on cash flow and earnings within the healthcare sector, which is seen as a positive sign for fundamental investing [4] Earnings and Stock Performance - There is a notable improvement in midcap stocks, with many reporting strong earnings, suggesting a positive trend in stock performance at the individual company level [6] - The current bull market, which has been ongoing since 2009, is expected to continue to show better news from a fundamental perspective as companies demonstrate earnings growth [7] Market Cycle Insights - The current phase of the bull market is noted to be three years in, with historical data suggesting that the third year is typically the weakest; however, this year has defied that trend [10] - Predictions indicate that 2026 may not be as strong as 2025, with expectations of low double-digit returns [11] Sector Analysis - Consumer staples are highlighted as a sector with potential for growth, despite being perceived as expensive; major players like Walmart and Costco are noted for their stability [13] - Real Estate Investment Trusts (REITs) are identified as another sector that is rate-dependent and may present investment opportunities [14] - Small and midcap stocks are viewed as a contrarian play with strong fundamentals, including earnings growth and dividend payments, making them attractive if the economic cycle improves [15]