Mike Dickson sees a solid macro backdrop into 2026 and thinks the rotation trade may continue as earnings broaden. “We’re pretty close to neutral” on rates, he argues, adding that it “doesn’t really matter” who the next Fed Chair is. Absent weakness in the labor market, he expects the committee to continue a “tug of war.” He breaks down sectors he’s watching for next year, including tech and healthcare. Margins will be the most sensitive area to watch, he concludes.

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2026 Fed ‘Tug of War’ as Rates Near Neutral