Big Take Wall Street’s Predictions for 2026
15 snips
Jan 1, 2026 In this engaging discussion, Sam Potter, Senior Markets Editor at Bloomberg, shares insights from Wall Street's latest predictions. He dives into the cautious optimism surrounding AI, warning of bubbles while advocating for diversification. Sam also examines the outlook for gold as a safe haven and bonds' potential in a shifting economy. With expectations for modest Fed easing and key risks including geopolitical tensions, he highlights the nuanced landscape investors face heading into 2026.
AI Snips
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AI Is Widely Seen As Transformative — With Bubble Risk
- Wall Street is broadly bullish that AI will be transformative and boost productivity across sectors.
- Many strategists also fear the AI investment cycle may be overhyped and resemble a bubble.
Broaden Your AI Bets To Infrastructure And Implementers
- Diversify beyond the mega-cap winners by hunting companies that implement or enable AI.
- Look for infrastructure, data centers, and second-order beneficiaries rather than just the Magnificent Seven.
Tailwinds Favor Risk Assets In 2026
- Wall Street expects risk assets to get tailwinds from AI, loose fiscal policy, and easier central banks.
- Strategists generally favor being invested rather than sitting on cash, despite muted double-digit return expectations.