RiskReversal Pod 2026 Market Outlook: The Show Must Go On with SoFi's Liz Thomas
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Dec 22, 2025 Joining the conversation is Liz Thomas, SoFi's investment strategist and author of the 2026 market outlook. She discusses the potential for market bubbles and reflects on the surprising success of her 2025 predictions. Liz elaborates on sector performance, arguing that small-cap gains may just be a catch-up, not sustainable growth. The conversation shifts to the implications of the yield curve inversion and Japan's economic moves, with Liz emphasizing gold as a pivotal asset for 2026 amid fiscal risks and changing global demand.
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Bullish Yet Cautious 2026 Outlook
- Liz Thomas argues 2026 still favors a bullish market as strengths outweigh risks like high valuations and capex debt.
- She warns the cycle can get "much more exuberant" before any correction, so timing a crash is futile.
Avoid Timing The Bubble
- Don’t try to time when a bubble will pop; instead weigh warning signs and decide if the current risk-reward fits your portfolio.
- Use historical lessons and position sizing rather than forecasting exact crash dates.
Rotation, Not Just AI, Led 2025
- Rotation drove 2025 returns more than an AI chase; cyclical sectors and health care showed underlying strength.
- Liz expects rotation to continue into 2026 with materials, health care, and consumer staples opportunities early in the year.