2026 Market Outlook: Buy AI Infrastructure And Sell European Stocks
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Tangerine Tan Capital3.06K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryLiquidity remains the primary market driver, with falling rates expected to support asset prices.Fed projects the federal funds rate at 3.4% by 2026, implying one rate cut and higher GDP growth.AI infrastructure expansion is a known secular growth force that will continue through 2026. Marut Khobtakhob/iStock via Getty Images The Market Outlook Investment Thesis At the end of the year, predictions for the following year are often published.
The Seeking Alpha 2025 Market Prediction Contest, in which I participated last year, is also comingThis article was written byTangerine Tan Capital3.06K FollowersFollowMy primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. The ideal scenario is for these companies to demonstrate a long-term capability of capital compounding, with a high enough compound annual growth rate to potentially deliver tenfold returns or even greater.My approach is to maintain a long-term perspective on these companies, as I believe this will generate higher returns compared to the market index, in a rapidly evolving investment landscape where short-term holdings are becoming increasingly prevalent.I primarily adopt a conservative investment strategy, but occasionally I may pursue opportunities with a favorable risk-reward ratio where the potential upside is substantial and downside is limited. These ventures are carefully considered and allocated a proportional amount within my portfolio to maintain overall stability.Bachelor's degree in finance and accounting All ideas and articles are provided for informational and educational purposes. Nothing contained herein is investment advice or should be construed as investment advice. All decisions that you make after reading our articles and reports are 100% your responsibility.Analyst’s Disclosure:I/we have a beneficial long position in the shares of TSM, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.