Why Some Strategists Think the Bull Market Could Last Into 2026

Good Morning,

– Truly yours, Fred Frost

📉 Yesterday's Market Recap

Yesterday, the major U.S. indices closed lower for the second straight day, missing the much-hyped 'Santa Claus rally.' Silver and gold also retreated from record highs, while some energy stocks bucked the trend with oil prices climbing. Here’s what moved the needle.

• Dow, S&P 500, Nasdaq Down Again: All three major indices ended in the red on December 29, with no holiday cheer to lift spirits. → MarketWatch


• Energy Stocks Gain on Oil Rise: Diamondback Energy and Devon Energy rose nearly 2% as oil prices climbed over 2%, driven by geopolitical tensions. → CNBC


• Silver Plunges 8.7%: Silver prices cratered to $70.46 an ounce, the largest one-day dollar drop since 1980, after a 140% yearly surge. → MarketWatch

📈 Daily Performance Snapshot

🔭 What to Watch Today

As we close out 2025, today’s calendar offers critical signals for the year ahead. From Fed insights to geopolitical ripples, here’s what could sway markets before the New Year’s bell.

💡 Opportunity Watch

With 2025 in the rearview, let’s spotlight a few areas where savvy investors might find an edge as we pivot to 2026. These themes tie into recent market shifts and policy winds—worth a closer look.

• Alcoa (AA) Momentum Surge: Up 41.5% YTD, Alcoa’s riding an aluminum rally and analyst upgrades, with potential for further gains as a key supplier to Ford and RTX. → Benzinga
• Tesla (TSLA) Autonomous Push: Analyst Dan Ives sees self-driving tech adding $1 trillion to Tesla’s valuation by 2026— a speculative but high-impact bet. → Stocktwits
• Ecolab (ECL) Data Center Play: With 25% growth in its high-tech segment, Ecolab is capitalizing on AI infrastructure demand for water solutions— a sleeper growth story. → Seeking Alpha

Inside Crypto’s Q4 2025 “Point of No Return”

From 600 interviews: the catalyst to watch, the hidden pattern top earners use, and why this cycle could outpace 2017 and 2021. Get Crypto Revolution free—plus bonus guides.

By clicking the link above you agree to receive periodic updates from our sponsor.

🔥 The Big Bullet

Strategist says the bull market may run into 2026

What happened: U.S. stocks have climbed for months, with major indexes hitting new highs and feeding talk of a long-running bull market. In a recent analysis from TheStreet, strategist Ryan Detrick argues that this bull run still has room to go and could even deliver strong gains in 2026. He points to steady market momentum and strong interest in stocks as signs that buyers are not yet exhausted. The piece suggests that pullbacks so far have been brief and that investors have often stepped in quickly when prices dip. This has kept the main trend pointed higher, even as headlines about politics, inflation, and global risks continue to appear. Many investors are now asking whether they are late to the rally or if there is still time to benefit. Others worry that the higher prices climb, the more painful the next correction could be. Overall, the current mood is a mix of optimism about continued gains and caution about how long the good times can last.

Why it matters: For everyday investors, the idea of an ongoing bull market can be appealing because it suggests more upside ahead. If the analysis is right, staying invested or adding carefully to long-term positions could help grow retirement and college savings. But a MarketWatch update showing the Dow, S&P 500, and Nasdaq all closing lower as silver and gold pulled back sharply is a reminder that even strong markets can stumble quickly. Another report from CNBC noted that silver briefly topped $80 an ounce for the first time and then fell more than 8% overnight, a dramatic swing for a metal often seen as a safe haven. These sharp moves show how fragile confidence can be when prices are already high. Big drops in metals and stocks can hit investors who chased recent gains without a clear plan or time horizon. For risk-averse savers, this is a reminder that bull markets do not erase the need for emergency cash, diversification, and sensible position sizes. In simple terms, the chance for more gains comes with a real risk of larger and faster losses if the mood turns.

What’s next: Looking ahead, the key test for this bull market will be whether company earnings and the broader economy can keep supporting higher stock prices. If profits, hiring, and consumer spending stay solid, the market may be able to handle short pullbacks without breaking its longer uptrend. If they weaken, today’s rich prices could start to look stretched and invite a deeper correction. Some investors are already thinking about ways to protect themselves, including using gold and other safe-haven assets as a partial hedge, as seen in a Seeking Alpha column that treats gold as a long-term “time capsule” for wealth. A move toward more defensive holdings would be a sign that people are growing less comfortable with stock risk, even if indexes remain near highs. In the coming months, watch how markets react to earnings reports, inflation data, and central bank comments; strong rallies on good news point to confidence, while weak reactions suggest fatigue. Also pay attention to credit conditions and late payments, because stress in lending often appears before bigger problems in stocks. For conservative investors, the practical next step is to review their mix of stocks, bonds, and cash, rebalance where needed, and decide now how much volatility they can live with before the next rough patch hits.

• Why many strategists believe stocks could keep rising early in 2026, but cautions that risks, such as higher prices and economic shifts, could temper returns. – Forbes
• Even if the S&P 500 looks pricey, specific areas like biotech might outperform. – Seeking Alpha
• Valuation concentration in tech and the risk that overvalued segments could drag the broader market lower, an important counterpoint to bullish scenarios. – Business Insider

🧭 Policy & Market Ripples

• Grab Holdings (GRAB) Post-Lawsuit Strength: Settling an $80M lawsuit with $7.4B in cash to spare, Grab’s AV tech investments and 38% fintech growth make it a Southeast Asia contender. → Benzinga
• NYC Mayor-Elect Mamdani’s Policy Push: Set to take office January 1, Zohran Mamdani’s rent freeze and free childcare plans face funding and political hurdles—markets may feel the uncertainty. → Fortune
• Palantir (PLTR) Sentiment Shift: Down 1% while the S&P 500 rises, Palantir’s lofty multiples (100+ P/S) signal vulnerability as AI hype cools—rated a cautious ‘Hold.’ → Seeking Alpha