Expect markets to do well going into 2026, especially growth trade: BMO's Schleif

Market Overview - The market is experiencing gains and a broad-based rally, with positive movements across various sectors including AI, banks, retailers, and industrials [1] - There is optimism about the market's trajectory into 2026, with indications of underlying economic strength despite challenges faced by businesses [2] Earnings and Predictions - The market has shown resilience, with a 17% gain for the S&P this year, marking the third consecutive year of double-digit percentage gains [5] - Historical data suggests that average bull markets last about five years, indicating that the current market is still in its early stages [6] Economic Factors - Recent legislative measures and clarity around tariff policies are expected to positively impact the economy, alongside consumer support from back tax refunds and deregulation efforts [7] - The market's performance last year amidst uncertainties suggests that current clarity and fundamental support for earnings may sustain stock prices [8] Market Dynamics - There is ongoing confusion regarding market leadership, with fluctuations between major tech stocks and broader market indices [9] - The Federal Reserve's stance and continued earnings growth are critical factors for market stability moving forward [9] Historical Context - The market has only seen stocks rise in double-digit percentages four times consecutively in the last century, highlighting the uniqueness of the current situation [10]