How to stay invested – with safety gear

AFTER three consecutive years of double-digit gains for US equities till 2025, the first half of 2026 calls for investors to stay invested but to put on some safety gear.

As we see it, there are two forms of personal protective equipment (PPE): On the factory floor, PPE reduces the risk of injury. In markets, policy, positioning and earnings serve a similar purpose – enabling participation while buffering against shocks.

Policy looks steady enough to avoid a policy-induced downturn. Positioning is stretched, so the task is to rotate, not retreat. Earnings remain healthy, though dispersion is widening as artificial intelligence (AI) disruption separates the wheat from the chaff.