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Portfolio Positioning for 2026: Sectors to Watch

“We could be in the first couple of years” of AI gains, Thomas Martin says. With that said, he turns his attention to the Fed and employment, which he sees as one of the biggest risks to the market. He sees the Fed being “very cautious” and doesn’t expect a rate cut until at least 2Q. He’s positioning to favor communications, consumer discretionary, select industrials and utilities related to AI, and technology.

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02 Jan 2026

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