Underestimating the Fiscal Stimulus Catalyst in 2026

25 days ago

Dario Perkins

"I think the consensus is wildly underestimating how much policy stimulus is coming in next year. Not we're not even talking about the Fed here. We're talking about fiscal policy in the US, which is going to turn very reflationary. I think you've got pent up demand from this year and all of those capex and hiring decisions that were postponed. The global environment is much more reflationary."

The speaker argues that market forecasts are missing a significant near-term fiscal stimulus which will create a reflationary environment. He reasons that pent-up demand and deferred capital expenditures combined with a global shift toward reflation could act as a strong catalyst for market acceleration in 2026.

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