Why Some Strategists Think the Bull Market Could Last Into 2026

What a Longer Bull Market Could Mean for Your Portfolio December 30, 2025

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Markets push higher as investors weigh how long the rally can last.

Good Morning,

Markets are pressing to new highs, and some strategists argue the rally may still have room to run into 2026. We break down what's fueling that optimism, where cracks could still form, and why recent sharp moves in rates and commodities matter for investors. If you're indexed to the S&P 500 or concentrated in recent AI leaders, this is worth a closer look.

Grab Holdings emerges stronger post-lawsuit with robust fintech growth and AV tech bets, NYC mayor-elect Zohran Mamdani's progressive agenda sparks fiscal uncertainty, and Palantir faces pressure as investor sentiment cools amid concerns over high valuation multiples and waning AI enthusiasm.

Don't forget to voice your opinion in my polls below.

Here are your Morning Bullets.

– Truly yours, Fred Frost

📉 Yesterday's Market Recap

Yesterday, the major U.S. indices closed lower for the second straight day, missing the much-hyped 'Santa Claus rally.' Silver and gold also retreated from record highs, while some energy stocks bucked the trend with oil prices climbing. Here's what moved the needle.

Dow, S&P 500, Nasdaq Down Again: All three major indices ended in the red on December 29, with no holiday cheer to lift spirits. → MarketWatch

Energy Stocks Gain on Oil Rise: Diamondback Energy and Devon Energy rose nearly 2% as oil prices climbed over 2%, driven by geopolitical tensions. → CNBC

Silver Plunges 8.7%: Silver prices cratered to $70.46 an ounce, the largest one-day dollar drop since 1980, after a 140% yearly surge. → MarketWatch

📈 Daily Performance Snapshot

Index/Asset	Closing Value	Change
S&P 500	6,905.74	-0.35%
Nasdaq	23,474.35	-0.5%
Dow Jones	48,461.93	-0.51%
Gold	$4402.40	+1.35%
Crude Oil	$58.31	+0.4%
Bitcoin	$87,969	+0.92%
10-yr Treasury Yield	4.132%	+0.39%

🔭 What to Watch Today

As we close out 2025, today's calendar offers critical signals for the year ahead. From Fed insights to geopolitical ripples, here's what could sway markets before the New Year's bell.

Federal Reserve Minutes Release: Investors await the Fed's latest minutes for clues on rate policy amid a slowing job market and sticky inflation above 2%. → MarketWatch

Eurostar Channel Tunnel Disruption: Power supply issues and a failed Le Shuttle train are snarling travel, potentially impacting European logistics on New Year's Eve. → ABC News

Winter Storm Impact in U.S.: Heavy snow and power outages in the Great Lakes and Northeast may disrupt retail and transport sectors through the holiday. → AP News

💡 Opportunity Watch

With 2025 in the rearview, let's spotlight a few areas where savvy investors might find an edge as we pivot to 2026. These themes tie into recent market shifts and policy winds—worth a closer look.

Alcoa (AA) Momentum Surge: Up 41.5% YTD, Alcoa's riding an aluminum rally and analyst upgrades, with potential for further gains as a key supplier to Ford and RTX. → Benzinga
Tesla (TSLA) Autonomous Push: Analyst Dan Ives sees self-driving tech adding $1 trillion to Tesla's valuation by 2026— a speculative but high-impact bet. → Stocktwits
Ecolab (ECL) Data Center Play: With 25% growth in its high-tech segment, Ecolab is capitalizing on AI infrastructure demand for water solutions— a sleeper growth story. → Seeking Alpha

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🔥 The Big Bullet

Strategist says the bull market may run into 2026

What happened: U.S. stocks have climbed for months, with major indexes hitting new highs and feeding talk of a long-running bull market. In a recent analysis from TheStreet, strategist Ryan Detrick argues that this bull run still has room to go and could even deliver strong gains in 2026. He points to steady market momentum and strong interest in stocks as signs that buyers are not yet exhausted. The piece suggests that pullbacks so far have been brief and that investors have often stepped in quickly when prices dip. This has kept the main trend pointed higher, even as headlines about politics, inflation, and global risks continue to appear. Many investors are now asking whether they are late to the rally or if there is still time to benefit. Others worry that the higher prices climb, the more painful the next correction could be. Overall, the current mood is a mix of optimism about continued gains and caution about how long the good times can last.

Why it matters: For everyday investors, the idea of an ongoing bull market can be appealing because it suggests more upside ahead. If the analysis is right, staying invested or adding carefully to long-term positions could help grow retirement and college savings. But a MarketWatch update showing the Dow, S&P 500, and Nasdaq all closing lower as silver and gold pulled back sharply is a reminder that even strong markets can stumble quickly. Another report from CNBC noted that silver briefly topped $80 an ounce for the first time and then fell more than 8% overnight, a dramatic swing for a metal often seen as a safe haven. These sharp moves show how fragile confidence can be when prices are already high. Big drops in metals and stocks can hit investors who chased recent gains without a clear plan or time horizon. For risk-averse savers, this is a reminder that bull markets do not erase the need for emergency cash, diversification, and sensible position sizes. In simple terms, the chance for more gains comes with a real risk of larger and faster losses if the mood turns.

What's next: Looking ahead, the key test for this bull market will be whether company earnings and the broader economy can keep supporting higher stock prices. If profits, hiring, and consumer spending stay solid, the market may be able to handle short pullbacks without breaking its longer uptrend. If they weaken, today's rich prices could start to look stretched and invite a deeper correction. Some investors are already thinking about ways to protect themselves, including using gold and other safe-haven assets as a partial hedge, as seen in a Seeking Alpha column that treats gold as a long-term "time capsule" for wealth. A move toward more defensive holdings would be a sign that people are growing less comfortable with stock risk, even if indexes remain near highs. In the coming months, watch how markets react to earnings reports, inflation data, and central bank comments; strong rallies on good news point to confidence, while weak reactions suggest fatigue. Also pay attention to credit conditions and late payments, because stress in lending often appears before bigger problems in stocks. For conservative investors, the practical next step is to review their mix of stocks, bonds, and cash, rebalance where needed, and decide now how much volatility they can live with before the next rough patch hits.

Reader Feedback

Yesterday I asked you: Which statement best matches how you feel about silver's sudden price jump?

The majority of you at 21% said "It's a warning sign that markets are getting overheated"

Nathan from Idaho replied: "I think silver jumping so fast is a warning that the market might be getting too hot."

Here's what I'm asking you today:

How do you feel about the stock market right now?

Very confident — the rally still has legs

Cautious — gains may continue, but risk is rising

Worried — stocks feel too high and fragile

Not sure / No opinion

Other

As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts.

🧭 Policy & Market Ripples

Grab Holdings (GRAB) Post-Lawsuit Strength: Settling an $80M lawsuit with $7.4B in cash to spare, Grab's AV tech investments and 38% fintech growth make it a Southeast Asia contender. → Benzinga
NYC Mayor-Elect Mamdani's Policy Push: Set to take office January 1, Zohran Mamdani's rent freeze and free childcare plans face funding and political hurdles—markets may feel the uncertainty. → Fortune
Palantir (PLTR) Sentiment Shift: Down 1% while the S&P 500 rises, Palantir's lofty multiples (100+ P/S) signal vulnerability as AI hype cools—rated a cautious 'Hold.' → Seeking Alpha

📜 This Day in History – December 30

December 30 feels like a year-end audit of human ambition: new industries launched, rules clarified, and cultural products quietly positioned to outlast their moment.