Investor Lessons From 2025 For 2026

The S&P 500 maintained its bullish trend in 2025, reaching new highs, despite some underlying weakness. Technical indicators remain positive, but there are signs of potential divergences suggesting caution. Investors should watch key support levels and the 7,000-7,050 range as a critical control zone. Several key investor lessons from 2025 apply to 2026, including ignoring narratives and focusing on fundamentals. Bonds provided positive returns in 2025, challenging the dismissal of bonds as a diversifier. Distinguishing between volatility and risk, holding cash, and focusing on earnings growth were also vital. Portfolio plans must survive stress, which is more important than chasing momentum. Rebalancing portfolios is crucial to maintaining discipline and managing risk.