Chun Wang, senior analyst and portfolio manager at the Leuthold Group, says that the economy should perform well in 2026, with the mid-term election feeling more like a presidential election because fiscal and monetary policy should be aligned to prove something to voters, rather than the typical mid-term doldrums. Still, Wang believes that the wealth effect that has kept the economy out of a recession would be threatened by a market downturn, which means that a bear market would likely cause a recession. Wang says the near-term biggest macro risk is outside the U.S., most notably rising bond yields in Japan that, if they keep rising, "would cause a major disruption in this global risk rally."
Todd Rosenbluth, head of research at VettaFi, looks to small-caps this week, picking a Fidelity fund that takes a strategic, computer-driven, broadly diversified approach to the sector, providing moderately active management rather than the "significantly aggressive active management" that comes with a bottoms-up gunslinger picking stocks.
In the Market Call, Jonathan Smucker, portfolio manager at Marietta Investment Partners, discusses his approach to stock picking, melding top-down macro analysis with thematic investing before finishing with a bottoms-up analysis to confirm his direction.