The Rundown The Biggest Questions Facing Markets in 2026
Dec 28, 2025
In a lively discussion, Jason Ware, Chief Investment Officer of Albion Financial, shares insights on market trajectories into 2026. He explores whether AI investments will sustain the success of Big Tech and argues that fears around AI-driven debt are largely overstated. Ware also addresses the surprising resilience of markets amidst tariff concerns and offers perspectives on Federal Reserve dynamics. Plus, he predicts a healthy future for IPOs and M&A despite fluctuating performances in tech. With his expertise, Ware navigates the intricate landscape of market evolution.
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Economy And Earnings Drove Market Strength
- The market's resilience in 2025 stems from a resilient economy, strong earnings, and controlled inflation.
- Fed easing plus 13% earnings growth created a favorable backdrop for stocks despite headline risks.
AI Build-Out Still Early In Scale Terms
- AI is a multi-year secular theme with heavy infrastructure still required despite big current capex.
- Demand for compute far outstrips supply, implying continued build-out into the end of the decade.
Expect Tech To Keep Spending On AI
- Big tech CEOs prefer to keep spending on AI capex to avoid irrelevance even if it pressures near-term returns.
- Expect companies like Google and Amazon to fund AI from existing cash flows rather than sharply cut capex.