Fundstrat’s head of technical strategy says 2026 could be a rougher year for the stock market.
Mark Newton says in a new one interview on Thoughtful Money that there are a number of different negative factors that are working deeper into 2026.
“I think we’re in for a much more turbulent year than we’ve seen in recent years. We’ve now had three consecutive years of gains over 15%. Over 20% for the first two and now last year up 17%. Heading into a midterm election year, that’s normally the weakest of the four years that make up the presidential cycle.”
Newton predicts that the market will witness a downturn in late February that could last until October, although the strategist notes that this “won’t be an outright move.”
“I actually expect a decline of 15-20% starting in late February or early March and taking us into May or June. We rise into the summer and then we have a correction in the third quarter that largely marks the end of this consolidation.”
Newton notes that sentiment is starting to reach higher levels of optimism, and he thinks sentiment could reach speculative levels by the end of the month. The strategist also points out that tech giants have witnessed a “noticeable slowdown” in momentum.
“Tech has just become very overbought and I think this will be the year where we see some weakness in technology.”
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