6 Major Investment Themes Shaping 2026

Market Performance - The S&P 500 increased by approximately 16% and the Nasdaq 100 gained nearly 21% in 2025, driven largely by artificial intelligence as a key return driver [2] - Gold was the standout asset in 2025, rising about 68%, while Bitcoin declined roughly 5% despite its growing institutional presence [3] Economic Outlook - There are few signs of an imminent economic slowdown, although a K-shaped economic recovery persists, with high living costs contrasting booming asset markets [4] - The investment landscape remains favorable, with technological innovation, geopolitical uncertainty, and abundant liquidity expected to drive returns into 2026 [5] Sector Insights - Big Tech continues to dominate, with strong revenue growth and profitability, expanding into areas like cloud computing and autonomous driving [6] - The AI infrastructure cycle is ongoing, with significant capital expenditures projected to exceed $500 billion, indicating a multi-year buildout [11] - Solar energy has emerged as a strong performer, with costs for photovoltaic modules dropping by about 90% over the past decade, making it one of the cheapest power generation sources [29][30] - Oil and gas remain essential, with natural gas demand accelerating and oil prices stabilizing after recent volatility [32][36] Investment Strategies - Aligning portfolios with durable economic megatrends has proven successful, with a focus on sectors like healthcare and biotech, which are showing signs of recovery [10][44] - The Magnificent Seven stocks are expected to see earnings growth of 16.5% in 2026, driven by strong revenue growth and the integration of AI technologies [16][18] - Healthcare stocks have outperformed in the final quarter of the year, supported by stable demand and improving earnings visibility [44][46] Alternative Assets - Gold has seen a significant rise, increasing nearly 70% this year, and is viewed as a portfolio diversifier amid rising geopolitical tensions [38][40] - Bitcoin is increasingly recognized as a legitimate alternative for hedging risk, with its narrative as "digital gold" gaining traction [42]