Summary
- I expect a correction of 10% or more in large-cap US
stocks, particularly the S&P 500, in early or mid-2026.
- Consensus bullish sentiment and elevated S&P 500 valuations relative to global peers underpin my cautious outlook for US equities.
- I view potential US equity weakness as a buying opportunity and am preparing my portfolio accordingly.
- I favor British and European stocks, gold, and bonds to prepare for such a correction.
Main Thesis & Background
The purpose of this article is to look ahead at the new year and discuss why I am very confident we will see a correction (defined as 10% or more) in large-cap US stocks
