狮山巡礼
投资杂谈
The stock market continued to bounce back from its recent slide, but some unloved parts of the market were still standing out.
The SP 500 was up 1%. The Nasdaq Composite was up 1.2%. The Dow was up 301 points, or 0.6%.
This would be the second daily gain for the SP and Dow after each fell for four days in a row.
David Donabedian, co-chief investment officer of CIBC Private Wealth, toldBarronsthat instead of a December rally through the end of the year, its been more of a pause and a mini rotation.
The leaders are sectors like financials and industrials and materials, and tech has been less prominent, so thats a little bit unusual, Donabedian says. The year-end rallies usually put an exclamation point on whatever has been working for the year. So its kind of an interesting twist.
On Friday, tech was the top sector, but health care, financials, industrials, and materials werent far behind. Though he expects the bull market to continue in 2026, he doesnt see an extension of its run of above-average returns.
I get the sense that there are some legs to this broadening out and rotating into some of the, what have been unloved sectors for basically three years, Donabedian says. The issues that may have caused this pause in the great AI rally here are likely to continue to be things that our investors are focused on in 2026.
He thinks adoption rates of AI and capital expenditures, and what that all means for AI company balance sheets, will continue to be in focus for investors.
We expect the bull market to continue in 2026, he says. But were about to close the books on the third way above average year in a row. I dont think thats in the cards for next year. I think theres somewhat of a lid on valuations, so its probably one in which well have more volatility than weve generally experienced in the first three years of the bull market, and probably lower headline returns for the SP 500.
