In 2026, investors are questioning the billions spent on AI infrastructure, while the U.S. economy faces pricing and unemployment pressures. Despite potential headwinds, declining interest rates could support corporate earnings. The S&P 500 is expected to have another profitable year, with an average annual return of 7% and earnings growth over 12%.

Experts predict small- and mid-cap stocks may outperform large caps in 2026. Earnings growth for the S&P 600 index is expected to be 18%, with more reasonable valuations. Interest rate stabilization could boost mergers and acquisitions activity, benefiting smaller companies. Technology and finance stocks may have a strong year, driven by earnings and innovation.

International earnings are expected to grow in the high-single digits in 2026, with optimism from strong performance in European banks. Developed international equities offer long-term advantages, including lower valuations and higher dividend yields. Gold’s value increased over 50% in 2025, with expectations to continue its upward trajectory to reach $5,000 per ounce by the end of 2026.

In 2026, retirement contributions over $145,000 may require after-tax money, with catch-up contributions for those over 50. After-tax contributions can be withdrawn tax-free in retirement. The standard 401(k) contribution limit in 2026 is $24,500, with a catch-up limit of $8,000. Traditional 401(k) contributions are made with pretax funds.

Read more at Yahoo Finance: What’s ahead for stocks and gold in 2026? What experts are watching.