Fundstrat’s head of technical strategy says 2026 could be a rougher year for the stock market.
Mark Newton says in a new interview on Thoughtful Money that there are a couple of different negative factors heading deeper into 2026.
“I think we’re setting up for much more of a choppy year than we’ve seen in years past. We’ve had now three straight years of over 15% gains. Over 20% for the first two and now last year being up 17%. Heading into a mid-term election year, normally that does tend to be the weakest of the four years that make up the presidential cycle.”
Newton predicts that the market will witness a downtick starting in late February, which could last into October, although the strategist notes that it “won’t be a straight shot.”
“I’m actually expecting potentially a 15-20% decline, which starts in late February or early March, and takes us down into May or June, we rally into the summer, and then we have a third quarter correction that largely marks the end of this consolidation.”
Newton notes that sentiment has started to reach higher levels of optimism, and he thinks sentiment could reach a speculative level by the end of the month. The strategist also points out that tech giants have witnessed a “noticeable slowdown” in momentum.
“Tech has just gotten very overbought, and I think that this is going to be the year where we do see some weakness in technology.”
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