Core Insights - The article discusses the potential for a short-term rally in stocks that experienced significant declines in 2025 and had high short interest, suggesting that short sellers may cover their positions after the New Year to defer taxes [2][3]. Group 1: Stock Performance - The S&P 500 Index (SPX) increased by 1.11% during the first five trading days of 2026 [3]. - A list of 60 stocks that were down at least 10% in 2025 and had a short interest of 10% or more saw an average return of 6.94% in the first five days of 2026, with 83% of these stocks posting positive returns [3][4]. Group 2: Notable Stocks - Specific stocks highlighted include: - SRPT: Closed at $21.52 in 2025, down 82%, with a 2026 return of 7.6% [5]. - FMC: Closed at $13.87 in 2025, down 71%, with a 2026 return of 8.2% [5]. - RH: Closed at $179.15 in 2025, down 54%, with a 2026 return of 20.0% [5]. - CAVA: Closed at $58.69 in 2025, down 48%, with a 2026 return of 18.6% [5]. - UPST: Closed at $43.73 in 2025, down 29%, with a 2026 return of 15.7% [5]. Group 3: Technical Analysis - Quantum Computing Inc (NASDAQ: QUBT) shows round-number support at $10, while ON Semiconductor Corp (NASDAQ: ON) is forming a bullish flag pattern [6]. - Upstart Holdings Inc (NASDAQ: UPST) is testing its 100-day moving average, and CAVA Group Inc (NYSE: CAVA) is facing resistance at its 200-day trendline [7].

Core Insights - Tax harvesting is expected to become the most in-demand customization feature in portfolio construction as solutions become more available [1][2] - Advisors rated tax harvesting a 3.7 out of 5 in terms of demand among portfolio construction features [2] - Other customization features include vehicle integration of ETFs (3.3), customized withdrawal plans (3.2), and managing concentrated positions (3.1) [2] Portfolio Construction Drivers - The primary drivers for portfolio construction decisions among advisors are maximizing risk-adjusted returns (44%), maximizing diversification and asset class coverage (41%), and creating long-term wealth growth (39%) [3] - For Registered Investment Advisors (RIAs), changes in clients' goals/risk profiles (89%) and liquidity needs/life events (86%) are the most important drivers for portfolio allocation changes [4] Advisor Relationships with Asset Managers - A significant majority of advisors (85%) collaborate with multiple fund managers for portfolio construction advice, with RIAs at 76%, wirehouse advisors at 88%, and independent broker/dealers at 91% [5] - Advisors prioritize risk analysis (55%) and portfolio optimization (53%) when seeking portfolio construction services from asset managers [6] - Over 60% of advisors rated the importance of meeting with an investment specialist as 3.7 out of 5 [6]