US Stocks May Continue to Thrive Amid Market Turbulence and High Volatility This Cycle
Introduction to the Bullish Case for Global Markets in 2026
The year 2026 is expected to be a strong one for global markets, despite concerns over tariffs, political risk, and a potential AI bubble. Ryan Detrick, chief market strategist at Carson Group, joins the conversation to provide a bullish case for global markets. He emphasizes that the current cycle may have further room to run, even with bouts of volatility along the way.
Key Takeaways from the Bullish Case
The key points to consider include:
- Market gains have broadened beyond the largest technology stocks, with most S&P 500 companies contributing meaningfully to recent returns.
- Bull markets historically last several years, and performance often improves after the choppy third year of a cycle.
- Volatility remains normal for equities, with corrections of 10 to 15 per cent common even during strong up years.
- Cyclical sectors tend to benefit as economic growth persists, while leadership rotates away from narrow concentration.
- Rising corporate earnings and profit margins continue to underpin the case for U.S. stocks in 2026.
A Global Bull Market
Ryan Detrick notes that it’s not just a U.S. story, but a global bull market. He emphasizes that many global markets, such as Asia, Canada, and Europe, have had an incredible run and are expected to continue doing well in 2026. The global participation in the bull market is a key factor to consider, as it suggests that the market is not just driven by a few large tech stocks.
Rotation and Broadening Market Participation
Detrick highlights that the market is experiencing rotation, with different sectors taking the lead. He notes that this is a healthy sign, as it indicates that the market is not reliant on just a few stocks. The broadening market participation is also a positive sign, as it suggests that more companies are contributing to the market’s gains.
Bull Markets and Volatility
Detrick emphasizes that bull markets tend to last longer than many people expect. He notes that the current bull market is not young, but it’s certainly not old, and that we can expect to see a 10-to-15-per-cent correction at some point. However, he believes that the market will continue to perform well, with a target of a 12-to-15-per-cent gain for the S&P 500.
Sector Preferences
Detrick notes that he is underweight small caps and prefers large caps over small caps. He also likes cyclicals over pure defensives, such as staples, and prefers higher-beta, cyclical areas that tend to do better if the economy performs well.
Conclusion
In conclusion, the bullish case for global markets in 2026 is strong, with broadening market participation, rotation, and rising corporate earnings all contributing to the positive outlook. While volatility is expected, Detrick believes that the market will continue to perform well, making it an exciting time for investors.
