Closing Bell Closing Bell: The Record-Setting Rally 1/6/25
Jan 6, 2026
Alicia Levine, a BNY Wealth strategist, discusses how the strength in financials signals a recovery while forecasting modest returns. Bryn Talkington, founder of Requisite Capital, dives into the implications of sector rotation and strategies like equal-weight investing. Rick Heitzman from FirstMark Capital offers insights on IPO prospects for 2026 and the dynamics of AI-driven fundraising. Mohamed El-Erian emphasizes the importance of coherent AI adoption policies to enhance productivity while managing labor market challenges.
AI Snips
Chapters
Transcript
Episode notes
Cyclical Pulse Is Driving New Highs
- The market breadth is shifting from mega-cap tech to a cyclical-led rally driven by financials, industrials and discretionary names.
- Strategas and BNY see this cyclical pulse as confirmation of a global recovery rather than a downturn.
Returns Likely More Evenly Distributed
- Alicia Levine expects returns to be positive but more evenly distributed as equal-weight and value catch up to large-cap tech.
- She forecasts roughly 11–12% market returns with upside if growth surprises to the upside.
Use Equal Weight To Capture Broadening Rally
- Consider equal-weight strategies like RSP or Dow exposure (DIA) to capture breadth outside AI-dominant mega-caps.
- Diversify into financials, industrials and small/mid caps where earnings and policy tailwinds exist.