HSBC strategists say investors have underestimated the possibility of a financial rise in the stock market. They said they will maintain an “aggressive risk appetite” in 2026. “We are almost maximally overvalued in stocks,” the team led by Max Kettner wrote. On a tactical level, they favor small-cap stocks, unprofitable tech stocks, and high-beta momentum stocks.

HSBC strategists say investors have underestimated the possibility of a financial rise in the stock market. They said they will maintain an “aggressive risk appetite” in 2026. “We are almost maximally overvalued in stocks,” the team led by Max Kettner wrote. On a tactical level, they favor small-cap stocks, unprofitable tech stocks, and high-beta momentum stocks.