Discover what’s shaping the market narrative heading into 2026. CFRA Chief Investment Strategist Sam Stovall, CFP, projects 13.5% S&P 500 earnings growth for 2026—here's his roadmap for navigating elevated valuations while capitalizing on Fed easing and post-election momentum.
As markets recently hit coordinated all-time highs, positioning for 2026 becomes critical. In this video, Stovall outlines how the market rebounded from early-2025 weakness and why he expects to see ongoing resilience. Topics covered explore the role of the Buffett Indicator, stretched P/E ratios, and shifting breadth, while highlighting the historical patterns that point to potential strength in the upcoming year. His analysis emphasizes the significance of the second year of a rate-cut cycle, the fourth year of the current bull market, and the strong performance trends that often follow midterm elections once uncertainty declines.
Sam’s Key Expectations for 2026
- S&P 500 earnings projected to rise ~13.5%
- S&P 500 year-end target of 7,400
- Continued support from easing monetary policy
- Improving GDP growth and moderating inflation pressures
- A potential path toward trimmed valuations as earnings strengthen
Stovall offers practical guidance on sector positioning, historical patterns in winner-vs-loser strategies, and what market signals may matter most in the months ahead. While volatility is likely to persist, Sam’s perspective suggests a continued—though more measured—path forward for U.S. equities as 2026 unfolds.