Bitcoin’s weakness is saying there will be a handoff to old-economy stocks, these market veterans say

Core Viewpoint - Analysts suggest that old economy stocks may thrive in 2026 as the market shifts focus from speculative assets to more traditional sectors [2][4]. Group 1: Market Predictions - A transition is expected in the first half of 2026 from speculative parts of the economy to the real economy, including sectors like transports, regional banks, housing, chemicals, and commodities [4]. - Financial stocks are highlighted, with Bank of America (BAC) recently closing at its highest since November 2006, indicating a potential deregulatory environment for financials [4]. - Mergers among regional banks are anticipated in 2026, reflecting a consolidation trend in the financial sector [4]. Group 2: Investment Opportunities - Alternative private capital stocks such as Apollo Global Management (APO) and Blackstone (BX) are favored, having been undervalued due to recent credit concerns [5]. - The healthcare sector remains strong, with companies like Eli Lilly (LLY) and Intuitive Surgical (ISRG) being noted for their resilience [5]. - The decline in Bitcoin prices suggests a shift towards real economy stocks, with Bitcoin currently well below its October high of $125,000 [5][6].