Longtime fund manager lays out surprising S&P 500 target for 2026

Louis Navellier has seen a happening oregon 2 since helium began navigating the banal marketplace successful the 1980s. Navellier, the laminitis of Navellier & Associates, a steadfast with astir $1 cardinal successful assets nether management, has managed wealth done the savings and indebtedness situation of the 1980s and aboriginal 1990s, the net roar and bust, the Great Recession, the Covid pandemic, and 2022's carnivore market.

Over the years, helium learned invaluable lessons astir what causes stocks to emergence oregon autumn — a cognition that correctly kept him bullish successful 2025 portion others disquieted implicit tariffs, geopolitics, and a boxed-in Fed.

Effective tariff rates soared to 16.8% from 2.4% successful January, the highest since 1935, according to Yale Budget Lab, contributing to a rebound of inflation. Meanwhile, tensions flared successful the Middle East adjacent arsenic the War successful Ukraine dragged on. The Fed's dual mandate kept it connected the sidelines done the summer, earlier Chairman Powell yet chopped rates astatine 3 consecutive FOMC meetings successful September, October, and December, due to the fact that of occupation losses.

In short, there's been plentifulness to interest about. Still, Navellier remained unfazed by it all, believing tariffs and ostentation headwinds would beryllium temporary, clearing the mode for profit-friendly complaint cuts, higher GDP, and stock terms gains.

Navellier's marketplace outlook for 2026 is likewise bullish. The Wall Street veteran's forecast calls for yet different twelvemonth of double-digit returns.

Navellier's bullishness is successful crisp opposition to bear-market concerns that the U.S. system is astatine hazard of stagflation, a play of dilatory maturation and higher prices, oregon worse, a looming recession.

The unemployment complaint has ticked up to 4.6% from a debased of 3.4% successful 2023, according to the Bureau of Labor Statisticsunemployment report. Layoffs exceeded 1.1 cardinal done November, up 54% from past year, according to Challenger, Gray, & Christmas. Yet, Navellier believes the Fed tin inactive crook the corner, supporting GDP growth, the labour market, and stock prices.

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"There is nary crushed for the Fed to stay restrictive erstwhile the U.S. system is not creating galore jobs," wrote Navellier successful a enactment shared with TheStreet. "The Fed has to chopped cardinal involvement rates 4 much times successful 2026 to determination to a neutral rate, and much whitethorn beryllium needed if deflationary pressures intensify."