If Wall Street bulls want to achieve a fourth consecutive year of double-digit returns in 2026, many favorable factors will need to come together. Trade tension between the US and its neighbors is still high, and the US economy is showing signs of fatigue. Even after three interest rate cuts, interest rates remain high, and the artificial intelligence sector is far from winning. Geopolitical risks, too, cannot be ignored. Although the US military action in Venezuela did not impact US financial market sentiment, the sudden action reminded investors that in a world undergoing generational geopolitical changes, any trading theory could be vulnerable. Christopher Harvey, head of equity and portfolio strategy at CIBC Capital Markets, said in an interview on Monday, “We think the market has underestimated the macro risk — and the US intervention in Venezuela this time is a macro risk we never anticipated.”

If Wall Street bulls want to achieve a fourth consecutive year of double-digit returns in 2026, many favorable factors will need to come together. Trade tension between the US and its neighbors is still high, and the US economy is showing signs of fatigue. Even after three interest rate cuts, interest rates remain high, and the artificial intelligence sector is far from winning. Geopolitical risks, too, cannot be ignored. Although the US military action in Venezuela did not impact US financial market sentiment, the sudden action reminded investors that in a world undergoing generational geopolitical changes, any trading theory could be vulnerable. Christopher Harvey, head of equity and portfolio strategy at CIBC Capital Markets, said in an interview on Monday, “We think the market has underestimated the macro risk — and the US intervention in Venezuela this time is a macro risk we never anticipated.”