The Compound and Friends These Are Wall Street’s Predictions for 2026
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Dec 24, 2025 
Join Sam Rowe, an independent market strategist who dives deep into Wall Street's predictions, as he sheds light on 2026's S&P 500 targets. He discusses how strategists formulate and update price targets, marvels at the persistence of bullish forecasts, and explores the implications of AI on earnings growth. Rowe highlights the return of high P/E multiples and examines sector specifics, like tech and industrials. With a keen eye on historical patterns, he navigates the chatter around market bubbles and forecasts for the future.
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Strategists Aim For The 8–10% Comfort Zone
- Wall Street strategist year-end S&P targets cluster around an assumed 8–10% return driven by marketing and convention.
- Historical margin of error is large, so targets signal sentiment more than precise forecasts.
Strategists Rarely Start Bearish
- Most strategists remain broadly bullish entering 2026 despite recent strong gains.
- They rarely start the year bearish and usually only cut targets after markets fall.
High Multiples May Be Justified This Cycle
- Several strategists accept higher-than-average forward P/E this cycle, some even expecting it to hold or rise.
- That reflects belief in AI-driven efficiency and profit margin expansion justifying premiums.