Look, I know what you’re thinking. Another year, another batch of market predictions from some Wall Street guru with a crystal ball that’s probably just a Magic 8-Ball in disguise. But hear me out – Louis Navellier’s latest predictions for 2026 actually make sense, and I’m not just saying that because I need content for this blog.
1. Kevin Hassett Might Actually Become Fed Chair (And That’s Not Terrible)
Jerome Powell’s term ends in May, and Trump’s likely to tap Kevin Hassett as his replacement. Here’s the thing – Hassett’s already making the right noises about being independent while also hinting there’s “plenty of room” to cut rates. Translation: He’s playing the political game without completely selling his soul. Plus, he’s got that “glass half full” vibe that could actually boost market confidence. Sometimes optimism is a strategy, not just a personality trait.
2. Two More Rate Cuts Are Coming (Because Math)
The Fed already cut rates three times in 2025, bringing us down to 3.5-3.75%. Navellier thinks we’ll see at least two more cuts in 2026, and honestly, the data backs this up. Inflation’s cooling off, unemployment hit 4.6% in November, and deflationary pressures are spreading globally. When the economy starts looking wobbly, the Fed’s playbook is pretty predictable: cut rates and hope for the best.
3. The AI Revolution Isn’t Dead (Despite What Your Uncle Says at Thanksgiving)
Yeah, yeah, everyone’s been calling the AI bubble for months now. But here’s the reality check – data center construction is absolutely exploding, and NVIDIA just posted 65% year-over-year revenue growth expectations. That’s not bubble behavior; that’s “we literally can’t build this stuff fast enough” behavior. The AI revolution is real, it’s just not as flashy as everyone expected. Sometimes the biggest changes happen in server farms, not on your iPhone.
4. 5% GDP Growth Isn’t Fantasy Football
The U.S. economy is already cruising at 3.5-3.8% growth, and Treasury Secretary Scott Bessent is talking about a “very strong” holiday season. Add in those rate cuts, the ongoing data center boom, and increased onshoring (especially in pharmaceuticals), and suddenly 5% GDP growth doesn’t sound crazy. It sounds like basic math with a side of American industrial policy.
5. Earnings Are About to Hit the Afterburners
Here’s where it gets interesting. The S&P 500 just had its strongest revenue growth in three years and strongest earnings growth in four years. Fourth-quarter earnings are now forecast to jump 8.1%, and FactSet projects 14.5% earnings growth for 2026. That’s not just good – that’s “maybe I should pay attention to my portfolio” good.
The Bottom Line
Navellier calls this the “Economic Singularity” – basically, a fancy way of saying some companies are about to leave others in the dust thanks to AI and productivity gains. The key isn’t just owning stocks anymore; it’s owning the right stocks. Because in 2026, being average might not be good enough.
So there you have it – five predictions that might actually pan out. Will they all come true? Probably not. But they’re based on real data, not just wishful thinking and PowerPoint presentations. And in this market, that’s refreshingly honest.