FOMO vs. Bubble Angst Signals More Stock Volatility in 2026

Group 1 - The US stock market is expected to remain volatile in 2026, with investors torn between the fear of missing out on the AI rally and concerns about a potential bubble [1] - The tech companies driving the AI investment boom have a significant impact on the market, with their performance affecting overall market volatility [2] - A recent Bank of America survey indicates that fund managers are primarily concerned about the possibility of a bubble, while also fearing the risk of missing out on further gains [3] Group 2 - Strategists predict that equity volatility will persist in 2026, as asset bubbles tend to become more unstable as they grow [4] - UBS strategists emphasize the importance of owning contracts that benefit from increased volatility in the tech-heavy Nasdaq 100 Index, suggesting that such positions can be structured to be directionally neutral [5]