Mistletoe Magic And The S&P 500 In 2026

Mistletoe is relevant to several cultures. In the advent of the Christian era, mistletoe in the Western world became associated with Christmas as a decoration under which lovers are expected to kiss, as well as with protection from witches and demons. Let's hope its magic lasts into 2026 through next Christmas.

The consensus among Wall Street investment strategists is that the magic will last. According to Bloomberg, their average estimate for the S&P 500 by the end of next year is 7,555 with a low of 7,000 and a high of 8,100 (chart). That average is 9.0% above today's close. Our forecast of 7,700 would be up 11%. However, the first half of 2026 could see a correction if bond yields rise significantly, given mounting concerns that monetary and fiscal policies might be overly stimulative.