Bloomberg Surveillance Stocks Tick Higher as Yields Rise After BOJ Hike
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Dec 19, 2025 Join Alicia Levine, Head of Investment Strategy at BNY Wealth, as she paints an optimistic picture for the 2026 market with a projected S&P target of 7,600. Win Thin, Chief Economist at Bank of Nassau, provides insights on inflation dynamics and labor market weakness, suggesting modest recession odds. Katy Kaminsky, Chief Research Strategist at AlphaSimplex, analyzes stock trends, emphasizing AI’s role while noting the complexities of rising yields and inflation. Together, they explore the intricacies of the current economic landscape with wit and depth.
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Corporate Earnings And Nonlinear 2026 Outlook
- Alicia Levine expects 13% earnings growth and raised S&P target to 7,600 for 2026 based on resilient corporate fundamentals.
- She warns the year will be nonlinear with policy noise from dollar and bond markets as Japan hikes.
Watch Fiscal Flows Supporting Employment
- Alicia Levine highlights $160 billion in household tax relief and $200 billion in corporate CapEx as near-term fiscal supports to watch.
- Use those flows to anticipate sustained employment and potential recovery in early 2026.
Earnings, Not Multiples, Drove 2025 Rally
- Alicia says 2025's market rally was driven mainly by earnings, not multiple expansion, so 2026 needs earnings to sustain gains.
- She cautions multiples are unlikely to rise much further, narrowing upside without earnings growth.