Bloomberg Daybreak: US Edition Daybreak Holiday: Market Expectations, The 12 Days of Christmas Cost
Dec 24, 2025
Cameron Dawson, Chief Investment Officer at New Edge Wealth, shares insights on market expectations for 2026, highlighting key valuation factors and sector rotations. Brian Levitt, Global Market Strategist at Invesco, discusses the impact of policy uncertainty on volatility and identifies promising sectors like financials and industrials. Amanda Agati, Chief Investment Officer at PNC, reveals the economic implications of the 12 Days of Christmas Index, noting rising costs for gold rings and steady pricing for some birds, while reflecting on luxury consumer trends.
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Bearish April Left A Wall Of Capital
- The April 2025 low left investors extremely bearish, creating a large pool of cash that quickly bought dips.
- Earnings growth (10–11% in 2025) drove returns despite high starting valuations, and consensus expects continued strong earnings in 2026.
Policy Uncertainty Drove Volatility Then Relief
- Policy uncertainty drove volatility in 2025 and markets rallied once clarity around tariffs and inflation expectations improved.
- Broadening market performance followed as volatility eased and policy became clearer.
Tariffs Mask Treasury Funding Needs
- Tariff rulings could affect Treasury issuance because tariffs have been masking some deficit financing needs.
- Rising long-end yields may partially price fiscal risks if tariff revenue is reduced.