Outrageous Predictions
Executive Summary: Outrageous Predictions 2026
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London Quick Take – 12 Dec - Stocks hit fresh record highs as investors rotate out of tech, UK economy shrinks
Neil Wilson
Investor Content Strategist
Note: This is marketing material. This article is not investment advice, capital is at risk.
The UK economy shrank in October and it’s probably even worse in November due to the pre-Budget malaise and worsening fundamentals in the economy. Blame the Budget by all means but there has been no growth since June...could see contraction in Q4. How does it improve from here? This means a rate cut next week by the Bank of England is a slam dunk. It also portends to the BoE going further next year. Sterling traded lower against the dollar after yesterday's two-month high at 1.3438, a previous horizontal support/resistance level, was firmly rejected. GBPUSD still trades above its 200-day moving average though with the dollar broadly softer in the wake of the Fed rate cut this week.
Global equities are grinding their way to record highs with this week’s US rate cut aiding a rotation into value and cyclicals. The FTSE 100, DAX and CAC were all up more than +0.5% higher early on Friday with the Europe Stoxx 600 trading at a record high with financials and industrials the big gainers. The cyclical/value rotation story is good for the FTSE so we could see 10k by the year-end.
US stock markets closed at record highs yesterday as we saw positive rotation out of tech and into other less frothy corners of the market, with investors shrugging off AI bubble concerns (Oracle down 11%) for the time being. The S&P 500 finished the day above 6,900, led by financials with Visa and MasterCard jumping, while the Dow Jones and Russell 2k also finished at all-time closing high. The tech-heavy Nasdaq declined 0.25% with Nvidia and Alphabet notable drags. But with bullish calls for 2026 locked in by the major investment banks this looks set up for a year-end push higher led by what you can be referred to as a healthy rotation.
AI bubble: Broadcom beat on earnings and sales and said AI chip sales will double in the current quarter but the stock still got hit in after-hours trading. AVGO slipped 5% in extended trading despite very strong results – seems to be part of an AI pullback following Oracle etc; shares are still up +70% YTD.
Disney shares rallied after it revealed a content-sharing arrangement with OpenAI...this is where AI can get really cool and monetized fast with applications that plug into what people love.
Global equities are grinding their way to record highs with this week’s US rate cut aiding a rotation into value and cyclicals. The FTSE 100, DAX and CAC were all up more than +0.5% higher early on Friday with the Europe Stoxx 600 trading at a record high with financials and industrials the big gainers. The cyclical/value rotation story is good for the FTSE so we could see 10k by the year-end.
US stock markets closed at record highs yesterday as we saw positive rotation out of tech and into other less frothy corners of the market, with investors shrugging off AI bubble concerns (Oracle down 11%) for the time being. The S&P 500 finished the day above 6,900, led by financials with Visa and MasterCard jumping, while the Dow Jones and Russell 2k also finished at all-time closing high. The tech-heavy Nasdaq declined 0.25% with Nvidia and Alphabet notable drags. But with bullish calls for 2026 locked in by the major investment banks this looks set up for a year-end push higher led by what you can be referred to as a healthy rotation.
AI bubble: Broadcom beat on earnings and sales and said AI chip sales will double in the current quarter but the stock still got hit in after-hours trading. AVGO slipped 5% in extended trading despite very strong results – seems to be part of an AI pullback following Oracle etc; shares are still up +70% YTD.
Disney shares rallied after it revealed a content-sharing arrangement with OpenAI...this is where AI can get really cool and monetized fast with applications that plug into what people love.
Read my look at some ideas for 2026 here.
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