Commentary
As we enter 2026, I would say last year seemed a lot like 1998, and 2026 could be like 1999, one of the best years for stock markets. Among the many big events looming this January, we should see continuing strong earnings reports, as the stock market is now enjoying its strongest sales growth in three years and fastest earnings growth in four years. Furthermore, earnings surprises last quarter ran at the fastest pace in four years, and the analyst community has been revising their consensus earnings estimates steadily higher. All this comes while the Fed may be cutting key interest rates further, and if deflation emerges, the Fed will likely pick up the pace of their rate cuts.
