AI will still be a tailwind in 2026, says NB Private Wealth's Shannon Saccocia

Market Sentiment - The market is experiencing fluctuations, with a recent uptick in AI-related trades noted as a positive sign [1] - The performance of Oracle is highlighted as significant, raising questions about consumer engagement and holiday season outcomes [2] Investment Themes - AI is expected to remain a strong investment theme, with a focus on capital expenditures from sectors beyond technology, such as industrials and financials [4] - The healthcare sector is also mentioned, with recent agreements on price cuts potentially serving as a tailwind for investments [4] Small Cap Performance - There is a favorable outlook for small-cap stocks, particularly in the first half of 2026, driven by economic growth, lower rates, and liquidity infusion around tax time [5] Interest Rates Outlook - Expectations indicate at least one more interest rate cut in the first quarter of the upcoming year, with a cautious approach to the Federal Reserve's actions in the latter half [6][7] Global Market Perspective - The U.S. economy shows meaningful strength, with optimism towards Japan and emerging markets (EM) becoming more attractive, particularly in the context of the AI trade [8][9] - Korea is identified as a potential opportunity within emerging markets, suggesting a diversified approach beyond just China [9][10]