Optimism Could Be the Most Profitable Strategy of 2026

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Investor Louis Navellier argues that while headlines continue to focus on risks, several important economic factors are improving, including accelerating GDP growth, resilient corporate earnings, and a rotation toward smaller, faster-growing companies positioned for the next phase of the AI boom. Navellier predicts the U.S. economy could hit 6% annualized growth in 2026 and sees an 'AI Dislocation' ahead, where the market moves past obvious AI winners and rewards a new group of enabling technology companies.

Why it matters

Navellier's optimistic outlook and predictions of an 'AI Dislocation' go against the grain of much market commentary, which tends to focus on risks and uncertainties. However, his evidence-based confidence in fundamentals like GDP growth and corporate earnings momentum suggests significant upside potential for investors who can look past the headlines and position themselves for the next phase of the AI boom.

The details

Navellier cites several factors driving his optimism, including 4.4% GDP growth in Q3 2025, resilient consumer spending and corporate activity despite higher interest rates, and a surge in the trade deficit that has lowered the Atlanta Fed's Q4 2025 GDP estimate but still points to growth north of 4%. He also highlights tailwinds like tax cuts, strong consumer demand, the AI data center buildout, improving home sales, and an estimated $20 trillion in onshoring activity. Navellier believes this momentum could push GDP growth as high as 6% in 2026.

• The U.S. economy posted its strongest back-to-back quarters of growth since 2021 in Q2 and Q3 2025.
• The Commerce Department recently revised its Q3 2025 GDP estimate higher to a 4.4% annual pace, following 3.8% growth in Q2 2025.

What they’re saying

What’s next

Navellier plans to release more details on the 'AI Dislocation' and how he is positioning his portfolio to take advantage of the next phase of the AI boom.