As 2026 approaches, investors are reassessing the AI-driven stock surge of 2025 while facing cooling economic momentum. Still, expected rate cuts may help support earnings and keep markets steady, even if volatility persists.
Stocks: Slower but steady
Analysts expect the S&P 500 to deliver modest gains around its long-term average of 7%. Elevated valuations and ongoing debates about AI’s true value could drive choppier trading. Small- and mid-cap stocks may finally outperform, thanks to stronger earnings forecasts, reasonable valuations, and potentially revived merger activity.
International markets also look appealing, with strategists highlighting low valuations, higher dividends, and strong performance from European financials.
Gold: The standout story
Gold surged more than 50% in 2025 and experts say its momentum isn’t over. Persistent geopolitical tensions, central bank buying, and global uncertainty continue to support demand.
Paul Williams, managing director at Solomon Global, expects the rally to continue:
“We expect the precious metal to continue its upward trajectory and reach $5,000 per ounce by the end of 2026.”
Bank of America and HSBC share the same $5,000 target, while Goldman Sachs forecasts $4,900.
Retirement changes
In 2026, high earners over 50 must make catch-up contributions on an after-tax (Roth) basis. The 401(k) limit will be $24,500 plus an $8,000 catch-up, or $11,250 for those ages 60–63. IRA limits rise to $7,500 with a $1,100 catch-up.
Further reading: Yahoo Finance! | What’s ahead for stocks and gold in 2026? What experts are watching
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Buying physical gold as an investment involves risk, as the value of precious metal prices can be volatile. Historical financial performance does not necessarily give a guide of future financial performance. We recommend that you conduct your own independent research and seek professional tax, legal and financial advice before making any investment decisions.
