2026 Market Outlook: Modest Gains and Increased Volatility

Early Santa Rally and Market Outlook for 2026

David Katz, CIO at Matrix Asset Advisors, notes that the Santa rally arrived early this year. He anticipates that 2026 will see a shift in market dynamics, favoring value stocks, dividends, and small-cap companies, while advising caution regarding commodities. Tech gains are expected to be steady rather than explosive.