After a year defined by a 17% surge in the S&P 500, a sharp rebound following the "Liberation Day" tariff shock, and a gold rally that stunned even seasoned investors, Wall Street’s most accurate forecasters from 2025 are back with their playbooks for 2026. Their predictions—some bold, some cautious—reflect a market entering the new year with optimism tempered by policy uncertainty, geopolitical tension, and the ongoing evolution of artificial intelligence.
Business Insider's annual list of "Oracles of Wall Street" highlights strategists who most accurately anticipated last year’s market script, including the S&P 500’s double‑digit climb and the timing of the post‑tariff recovery. Their latest forecasts offer a roadmap for navigating what many expect to be another volatile but opportunity‑rich year.
Kabra: U.S. Stocks Still the Center of Gravity
Societe Generale strategist Manish Kabra, one of last year’s most accurate forecasters, is doubling down on his bullish stance. Kabra, who correctly projected the S&P 500’s 2025 trajectory, now expects the index to reach 7,300 in 2026—up from his 2025 target of 6,750.
His thesis is straightforward: "Prioritize U.S. equities."
Kabra argues that the Trump administration’s deregulation and tax policies will accelerate U.S. reindustrialization, boosting sectors such as:
- Consumer cyclicals
- Financials
- Industrials
His view aligns with broader Wall Street sentiment that U.S. equities remain attractive heading into 2026, supported by resilient earnings and a policy environment that favors domestic investment.
Colas: Materials, Real Estate, and Utilities Take the Lead
DataTrek Research co‑founder Nicholas Colas also earned recognition for his near‑perfect 2025 S&P 500 target—his forecast of 6,840 missed the actual closing level by just 5.5 points. While he hasn’t issued a specific index target for 2026, Colas believes the leadership baton will pass to more defensive and value‑oriented sectors.
His top picks for 2026:
- Materials
- Real estate
- Utilities
Colas’s sector rotation call reflects expectations of slower earnings growth in mega‑cap tech and a shift toward companies with stable cash flows and inflation‑resistant pricing power.
Sekera: AI Moves From Hype to Implementation
Morningstar Chief Strategist David Sekera sees 2026 as the year AI transitions from infrastructure build‑out to real‑world deployment. His view echoes broader industry commentary that AI’s next phase will be defined by product integration, not hardware spending.
Sekera recommends focusing on companies that can embed AI into everyday operations to improve efficiency. His examples include:
- Clorox
- Mondelez International
These aren’t traditional AI names, but Sekera argues that the winners of the next phase will be firms that use AI to enhance margins, streamline supply chains, and modernize legacy processes.
This perspective aligns with broader Wall Street commentary that 2026 will mark a shift from AI speculation to measurable productivity gains.
Detrick: Commodities Still Have Room to Run
Carson Research strategist Ryan Detrick remains bullish on commodities, calling for investors to increase exposure alongside equities. He believes the U.S. labor market—despite pockets of weakness—will remain resilient enough to support stronger‑than‑expected economic performance.
His thesis is supported by the broader 2026 outlook, which anticipates a "persistent but volatile bull" market driven by economic normalization and steady demand for raw materials.
Gundlach: Gold’s Safe‑Haven Power Isn’t Done Yet
No forecaster gained more attention last year than Jeffrey Gundlach, often referred to as the "New Bond King." After correctly predicting gold’s explosive rise—prices jumped more than 60% in 2025—Gundlach remains firmly bullish.
His earlier call for $4,000 per ounce gold, once seen as aggressive, now looks prescient. Gundlach attributes gold’s strength to:
- Geopolitical instability
- Debt‑driven inflation
- Currency devaluation fears
He recommends a 10%–15% allocation to physical gold in diversified portfolios, arguing that the metal will remain a core safe‑haven asset in 2026.
His view is consistent with Wall Street’s broader expectation that gold will continue to benefit from macro uncertainty and shifting global capital flows.
What the Forecasters Agree On
Despite differing sector preferences, the top strategists share several common themes:
1. U.S. Stocks Still Offer Value
Even after three consecutive years of strong gains, many analysts expect the S&P 500 to continue rising. Yahoo Finance reports that 2026 targets among major strategists range from 7,100 to 8,000, implying returns of 3% to 16% from current levels.
2. AI Will Drive Structural Opportunities
But not necessarily in the same way as 2023–2025. The consensus is that AI’s next phase will emphasize efficiency, automation, and enterprise adoption, rather than GPU‑driven hardware cycles.
3. Policy Will Shape Market Volatility
Tariffs, delayed rate cuts, and a shaky job market were major themes in 2025—and they remain central to 2026 forecasts.
4. Gold Remains a Strategic Hedge
With geopolitical risks elevated and inflation expectations uncertain, gold’s safe‑haven appeal is expected to persist.
Outlook: A Volatile but Opportunity‑Rich 2026
The most accurate forecasters from 2025 are not calling for a smooth ride in 2026. Instead, they expect a year defined by sector rotation, policy‑driven volatility, and structural opportunities in AI, commodities, and industrials.
But the overarching message is clear: The U.S. market still has room to run.
With inflation easing, AI adoption deepening, and policy tailwinds supporting domestic growth, investors may find that 2026—like 2025—rewards those who stay invested while navigating volatility with discipline.