TechFlow news, on December 21, ARK Invest founder Cathie Wood predicted that next year could be a "Goldilocks" year. I think the market has started to realize this, as this year's market has withstood two very difficult shocks—tariff turmoil, government shutdowns—and a full set of hawkish rhetoric from the Fed. After Miran (entering the Fed as a Trump appointee) joined, the Fed's hawkish tone intensified even further, and I believe this even forced other officials to lean in the opposite direction.
Therefore, we are hopeful about 2026, with some of these expectations already priced into the market. But if our forecasts are correct, economic growth will be stronger, and more importantly—inflation will be much, much lower than during the tariff period. Some people even believe that if oil prices continue to fall and rents keep declining, inflation could drop to zero or even below zero at some point.
