The latest episode of the Trending Report opens with a clear mission: to help advisors and investors look beyond headlines and focus on trend lines that matter for long-term success. Host Tyler Krzciok begins by reflecting on 2025—a year marked by resilience despite significant headwinds. Rising interest rates early in the year, new trade tariffs in April, and the longest government shutdown in U.S. history created uncertainty, while labor markets cooled. Yet, against this backdrop, equity markets surged. The S&P 500, NASDAQ, and Dow all posted double-digit gains, with the S&P 500 delivering an 18% total return and reaching all-time highs. Technology led the charge, with companies like Western Digital, Micron, and Seagate benefiting from heavy investment in AI development. Communication services and utilities also performed well, the latter supported by electricity demand from AI data centers and EV infrastructure.
Commodities were another standout story. Precious metals saw extraordinary gains, with gold up over 64% and silver spiking 141%, reflecting investor appetite for safe-haven assets amid volatility. However, not all trends were positive. Tyler highlights five of the worst-performing themes: mobile payments, master limited partnerships (MLPs), India consumer and tech, and Bitcoin. Mobile payments, once buoyed by pandemic-driven digital adoption, faltered under rising rates and intensified competition, dropping over 40%. MLPs struggled with choppy oil prices and regulatory uncertainty, while India-focused themes faced tightening global liquidity and geopolitical concerns. Bitcoin ended the year on a muted note as regulatory crackdowns and waning enthusiasm for speculative assets weighed on performance. These shifts underscore a key lesson: markets are unpredictable, and chasing short-term trends can derail long-term plans.
Turning to 2026, Tyler notes that consensus expectations call for continued bullishness, albeit with more modest single-digit returns. Easing financial conditions, tax adjustments, and renewed business investment—particularly in technology—are driving optimism. AI and automation remain dominant forces, with companies committing significant capital to infrastructure and data analytics. Consumer spending is expected to rebound early in the year, benefiting sectors tied to lifestyle and discretionary purchases. Beyond technology, healthcare and biotech look strong as aging populations and personalized medicine fuel demand. Industrial and infrastructure sectors also appear attractive amid modernization projects and favorable financial conditions. Consumer discretionary could surprise if confidence rebounds, but Tyler emphasizes that success in 2026 will come from positioning for tomorrow’s trends, not chasing yesterday’s winners.
The conversation then shifts to advisor insights. After the volatility of 2025, clients are asking more questions about risk management and discipline. Advisors are responding by doubling down on education—not formal schooling, but educating clients on their plans and the “why” behind investment decisions. Performance updates alone are no longer enough; clarity and confidence are paramount. Diversification is also back in focus, not just across asset classes but across strategies. Formulaic investing is gaining traction because it removes emotion and guesswork, providing a rules-based approach that adapts to market conditions. Thematic investing remains popular, but advisors are more selective, ensuring themes align with disciplined, long-term strategies rather than chasing the hottest trend. This mindset shift reflects a broader commitment to process over prediction.
Tyler closes with a powerful takeaway: markets will rise and fall, trends will shift, but success doesn’t hinge on predicting every twist. The real edge lies in discipline. Formulaic investing exemplifies this principle by keeping investors focused when headlines create noise. For advisors, platforms like Exchange offer access to diverse money managers and strategies, enabling diversification across growth, value, trend-following, and risk management approaches. This structure allows portfolios to adapt without abandoning the bigger picture. Investing isn’t about guessing—it’s about planning. When clarity, discipline, and the right tools converge, advisors and clients can navigate uncertainty and pursue long-term goals with confidence. Tyler’s final message is simple yet profound: stay informed, stay disciplined, and make 2026 a year of smart decisions.
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The Trending Report is a monthly commentary series that explores topical trends taking place within the current market and economy. It aims to provide clarity and encourage Advisors and Investors as they navigate and make sense of current market conditions. The ongoing battle between short term emotions and the commitment to long term investing is real. This series seeks to help Advisors and Investors focus their energy on long term success. Hosted and published by the investment professionals at USA Financial, each episode offers valuable commentary and analysis into various economic factors and market movements. By tuning in, our host breaks down complex topics into easy-to-understand information.
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