2026-01-05 08:27:06

Entering 2026, market observers have summarized this year's investment environment with three words: noise, stability, and style rotation.

The logic behind this judgment is straightforward—policy signals will continue to be released, corporate growth and profit data are expected to remain relatively steady, and capital flows will disperse from previous single hotspots to a broader range of benefiting sectors. Looking back over the past year, despite information bombardments from tariff expectations, AI themes, geopolitical conflicts, and liquidity stimuli, the US stock market still managed to rise steadily. In 2026, this "making money in chaos" pattern may become the new normal.

**Where does the noise come from?**

Political and institutional factors will be the main sources. As the US midterm elections approach, both state and federal levels may face power reallocation, which will continue to disrupt market expectations. Not to mention, the Supreme Court will also rule on a series of cases involving the market. Sensitive issues like tariff legality and regulatory boundaries could trigger emotional fluctuations with each decision. Historically, some incumbents tend to reduce their rhetoric in the second year, but this election cycle makes calmness a luxury.

**The "stability" of growth**

Interestingly, the underlying economic logic isn't as dramatic. US GDP growth is expected to slightly increase from 2.1% in 2025 to 2.6% in 2026. It doesn't seem like much, but it indicates a mild recovery. More importantly, corporate earnings—S&P 500 component earnings growth is expected to rise from 10.5% to 12.1%, which is the real pillar supporting stock prices. Based on this logic, the year-end target for the S&P 500 index is approximately around 7600 points.

**The significance of style rotation**

Over the past year, the market has been dominated by a few super themes—AI chips, tech giants, and specific policy beneficiaries. In 2026, this "monoculture" pattern may be broken, as capital begins to diversify into more industries and companies. For investors, this is both a risk and an opportunity—those neglected sectors may see a turnaround.

Simply put, this year is a game of seeking stability amid noise and pursuing returns through rotation. As long as you are not scared by policy black swans, the underlying fundamentals are sufficient to support the market to continue upward.

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NFTArchaeologis

· 01-06 22:09

The coexistence of noise and stability resembles the market pattern after the early internet bubble—appearances are complex, but the underlying logic is surprisingly resilient. Making money in chaos essentially means learning to distinguish real data within signals. The neglected sectors making a comeback may very well be the next artifact-level investment opportunity. Policy black swan events... history is never short of precedents. The difference this time is that corporate profits are indeed providing a safety net.

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LiquidationKing

· 01-06 19:19

Making money in chaos, that sounds like something I do --- Style rotation? Bro, I've been waiting for the neglected sectors to make a comeback --- Noise, stability, style switching... It all adds up to one word: gamble --- So basically, politicians keep arguing, and the money keeps moving upward --- S&P 7600? Then I need to see who’s still holding onto those few tech stocks --- This is the real 2026, with information overload but solid fundamentals --- Corporate earnings growth of 12.1%, that’s what I care about, everything else is noise --- The lone tree being broken, I’m just waiting for those dormant sectors to rise

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SocialFiQueen

· 01-06 10:02

Noise, stability, style switching... Basically, it's about seeing who can find the thread in the chaos. --- AI chips have dominated for a whole year, and now it's finally other sectors' turn to catch a breath. This opportunity belongs to those who are patient. --- 7600 points? Sounds good, but the key is whether the black swan will suddenly come and disrupt the market again. --- Political noise + solid fundamentals... It feels like betting that the Supreme Court won't cause too much trouble. --- Style rotation is easy to talk about but hard to do. When the time comes to switch, everyone is fighting for the ticket.

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PanicSeller69

· 01-05 08:56

Noise stable style switching? Sounds nice, but isn't it just betting that the policy won't produce black swans?

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SandwichTrader

· 01-05 08:44

Noise is noise, profit is king. This time, it's really about fundamentals.

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SchroedingerAirdrop

· 01-05 08:42

Noise, stability, style switching... sounds good, but actually it's just betting on policy not to collapse. --- That wave of AI chips really got drained, retail investors are still buying in. --- Wait, 7600 points? So conservative, it feels like the S&P should have already broken 8000. --- Style switching sounds good, but the question is who can know in advance which sector will take the turn... --- Making money in chaos sounds easy, but in reality, it's full of traps. --- Same old rhetoric, a calm election cycle is a luxury... said the same last year. --- Profit growth of 12.1%, where is this data from? Seems a bit overly optimistic. --- A neglected sector making a comeback? Which ones should we buy now? --- Midterm elections approaching are actually a signal; just see who bets on the right direction. --- Black swans can't scare me, but black swans themselves represent uncertainty.

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LonelyAnchorman

· 01-05 08:35

Noise, stability, style switching... sounds great, but the key is whether it can truly be diversified. Don't get completely hijacked by a new concept again.

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TrustlessMaximalist

· 01-05 08:35

Noise, stability, style switching... sounds great, but the only ones truly making money are those who bet early, right? Style rotation sounds exciting, but it still feels like you have to bet correctly on the next hot spot. Isn't that just gambling? Making money in chaos? I just want to ask who has really profited, or are we all just chasing gains and selling off in panic? 7600 points? Uh... that depends on there being no black swan events in policy, but when can black swan events be predicted? A neglected sector making a comeback? Sounds good, but how do I know which sector will be chosen?

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