Written by Alex Seleznev, MBA, CFP®, CFA and Alyssa Neece | Jan 21, 2026
For three years, the market has been on a winning streak.
For some, investing has almost felt easy.
The odds have often felt safe, relatively speaking.
But as we move into 2026, that "easy" feeling seems to be disappearing fast.
If the "Liberation Day" in April 2025 and related turbulence caught you off guard last year, take this as your wake-up call.
With high market valuations, growing geopolitical concerns and elevated investor expectations, the next market shock is just around the corner.
The Big AI Debate: Growth vs. Bubble
Close to 35% of the market’s value, as measured by the S&P 500 index, is currently tied to a few giant tech companies.
In his recent article, "King of Cannibal Island," John Lanchester warns that we have seen this pattern before.
History is full of "bubbles."
They happen when a new invention gets flooded with too much easy money.
Is AI a real revolution? Yes.
But are the prices sustainable? That is the big question.
When one tech company becomes more valuable than an entire country’s stock market, the risks are high.
Spending vs. Profits
Our own Asi de Silva recently looked at this same issue, in his article “Will Rising CapEx Drive Big-Tech Share Prices?”
Big Tech companies are spending record amounts of money on new hardware and data centers.
This is called "Capital Expenditure."
Spending money can fuel growth, but it doesn't always create real value for you as an investor.
In 2026, the market may stop looking at potential alone and start demanding profits.
If these massive investments don't pay off soon, the market could face a sharp correction.
How to Prepare
You don’t want you to just watch the markets or, even worse, be stressed about it.
You want you to be ready for what comes next.
The "rising tide" that lifted many stocks for the last three years may be going out.
This year, you may want to consider a more nuanced approach instead of passively following the market leaders.
You need a plan that can handle sudden shifts.
What does this mean for you?
Join our next webinar on Wednesday, January 28 at 12:00 pm ET to learn more about how to prepare your portfolio for 2026.
You can register for it HERE.
You will walk away with a better understanding of the current market dynamics and many practical ideas that you may use right away.