The article discusses the author’s experiences and insights into the defense industry, highlighting major contractors like Lockheed Martin, Northrop Grumman, and others. It emphasizes increasing demand and favorable funding amidst challenges, while the author shifts focus from traditional contractors to growth-oriented firms. Key risks include political shifts and supply chain disruptions.
In 2025, retail investors poured billions into gold and silver, driven by fears about inflation and the US economy, alongside a “Sell America” sentiment. Gold and silver prices surged, attracting significant interest, despite concerns of a potential market bubble. Many investors, feeling FOMO, see metals as a safer investment.
Bond ETFs have experienced significant growth, nearly doubling since 2020 to surpass $2 trillion. As money market yields fall to a three-year low, investors are urged to consider alternatives for better yields in a cooling inflation environment. Despite tight credit spreads, experts predict strong performance for corporate bonds in 2026.
Inflation has become a lasting reality in today’s economy, necessitating effective investment strategies. A dual approach combining gold futures with Treasury Inflation-Protected Securities (TIPS) offers robust protection against inflation fluctuations. Gold anticipates inflation trends, while TIPS provide stability linked to the Consumer Price Index, forming a comprehensive and adaptive inflation hedging framework.
Municipal bonds, while offering modest returns, provide low volatility, consistent income, and tax benefits appealing to retirees and wealthy investors. The sustainability of these tax advantages depends on government policies. Groups like the Public Finance Network advocate for their protection, as these bonds finance crucial infrastructure projects, benefiting both investors and issuers.
At the 2026 Consumer Electronics Show, significant advancements in AI were showcased, particularly for investors in the ROBO Global Artificial Intelligence ETF. Key updates included Nebius Group’s deployment of NVIDIA systems for enhanced AI performance, Ambarella’s launch of a developer platform and new high-performance chips, and AMD’s entry into edge AI with integrated processors and training platforms.
Over the past year, small-cap stocks have been gaining investor attention, outperforming large-cap equities. Recent trends show micro-cap, small-cap, and mid-cap stocks leading returns, aided by lower interest rates and strong earnings growth. Despite uncertainties, this shift suggests potential sustainability for small-cap outperformance through 2026.
The early weeks of the year have highlighted tensions affecting oil prices, particularly due to unrest in Iran, which has brought risk premium despite an oversupplied market. The potential impact of Venezuelan crude on North American midstream is limited, while a target oil price of $50 could challenge production but may not severely disrupt midstream cash flows.
The European natural gas market outlook is bearish, with global LNG exports leading to a surplus and lower prices, expecting TTF to average EUR30/MWh in 2026. While short-term market support exists due to low storage levels, risks remain from potential supply shocks and changes in Asian demand for LNG.
Despite concerns about AI in finance, experts highlight its utility rather than its ability to replace jobs. AI assists with self-education, administrative tasks, and generating insights based on investment philosophies. Professionals are using chatbots for summarizing literature, creating presentations, and organizing notes, streamlining their workflows effectively.
PepsiCo Inc., founded in 1898, is a leading $191 billion multinational food and beverage company. It enjoys robust revenue growth, impressive dividend increases over 53 years, and strong brand loyalty. Despite facing challenges like slowing growth and rising costs, analyst ratings suggest the stock might be undervalued, making it appealing for long-term investors.
The evolution of robotics has transitioned from fictional depictions to real-world applications, significantly impacting industries like healthcare and manufacturing. While industrial robots dominate, the rise of service robots offers insight into automation’s role in addressing labor shortages. Geopolitical dynamics and technological advancements will shape the future of robotics and automation.
Fourth-quarter earnings reports are expected to boost investor confidence, particularly for the S&P 500, which may see an 11.7% EPS growth. This trend could positively impact Invesco ETFs like QQQ and QQQM, as technology and communication sectors drive this growth. Historically, actual earnings have often exceeded estimates.
JPMorgan’s earnings report serves as a barometer for the banking sector and the economy. With strong revenues and profitability across its segments, the bank is thriving, reflecting its solid capital structure and effective cost management. Investors will closely monitor key metrics, including net interest income and credit conditions, during the upcoming earnings call.
