Smothers: AI Buildout Biggest 2026 Risk, FOMC to Cut Interest Rates 100bps

• The market is currently headline-driven but resilient, shrugging off negative news quickly.
• Optimistic macro economic outlook for 2026 due to strong GDP, potential Fed rate cuts (possibly 100bps), continued growth, productivity, and a favorable earnings season.
• The biggest known risk for 2026 is a potential slowdown in AI infrastructure spending if profitability or efficiency concerns arise.
• Investing strategy involves being 'heavy' in broad market indices (S&P 500, Nasdaq) and buying individual stocks that become oversold due to market overreactions.
• Royal Caribbean (RCL) is highlighted as an opportunity due to its strong business model, earnings, debt reduction, and recent buyback program.

Dale Smothers provides an optimistic outlook for 2026, driven by strong economic indicators and potential Fed rate cuts. He identifies a potential slowdown in AI infrastructure spending as the biggest risk but suggests a strategy of investing in broad market indices and buying oversold stocks like Royal Caribbean to capitalize on market overreactions.