Expect a 'proud bull' market in 2026, not a stampeding one: BofA's Chris Hyzy
CNBC's "The Exchange" team discusses the outlook for markets in 2026 with Chris Hyzy, chief investment officer for Merrill and Bank of America Private Bank.
Chief Investment Officer, Bank Of America
Search every verified Christopher Hyzy interview, podcast appearance, and on-the-record quote β each transcript cross-checked by AI and human review to confirm speaker identity. Christopher Hyzy, chief investment officer for Merrill and Bank of America Private Bank, has stated that he expects 2026 to be a year of a "proud bull" market, characterized by profit growth rather than multiple expansion. He described the current market momentum as an "elf rally" on the way to a "Santa Claus rally," and said that tailwinds in the first quarter of 2026 could include tax refunds and fiscal relief. Hyzy has also said that the market does not need a Federal Reserve rate cut in December to continue its upward trajectory, as it has already priced in a strong profit cycle through 2026. He has expressed a bullish outlook, referring to the current environment as an "Owl market" where investors seek confirmation of profit acceleration. Hyzy has emphasized that capital spending on AI and data infrastructure is accelerating, and that corporate earnings continue to surprise to the upside. He has advised investors to consider putting excess cash to workched and to stay invested for the long term, while also preparing for potential jolts and short-term volatility. Hyzy has noted that the market is seeing a broadening of participation beyond mega-cap tech, with sectors like energy and small caps showing strength. He has also stated that the Federal Reserve's recent liquidity announcement was a "risk on" move and that he expects markets to end the year on a high note.
“Right now the momentum, as you already stated, is this is an elf rally right now on the way to a Santa Claus type rally. So we're just beginning this right now.”
“Obviously tailwinds coming in the first quarter of next year β really between February and April you might see some good tax refunds, fiscal bill relief. On the consumer side, consumers are very resilient. Boomers are spending.”
“When have we seen the Federal Reserve cut rates into a growing momentum economy? ... The third mandate, which is price stability, arguably speaking, asset price stability is alive and well. And that gives us a very good comfort level for '26 β being a proud bull versus a stampeding bull.”
“It's not going to go up 20%. ... In '25, a bull is more: let's track earnings growth. Let's not expect multiple expansion.”
“When we look at profit growth being 14% or so, that could prove to be low if all stars align. But there's not a lot of downside in that profit growth number.”
“I think that's well stated because you had significant speculation in a few pockets across the marketplace. A few of those pockets have basically declined, yet the market held up β there actually is a broadening out happening with better growth; more people participate.”
“November with health care being up 9% and tech being down 4% tells us dispersion is still out there because there are underβowned sectors. Energy is a great example of it today being one of the leading performers β we think that story is a good one for '26.”
“I don't think it's 'wait and see.' We hear from companies every day β we hear from clients that run companies every day.”
“An unsettled global world order and a midterm election that could create a shift in power dynamics in Washington.”
“I'm Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank.”
“Is it too early to suggest what the big issues are for the midterms, and how much can the president get done if he loses control of the House of Representatives?”
“While our conviction for a positive, even transformative year ahead for the economy and equity still holds firm, it's important to prepare for potential jolts and short-term volatility.”
“Remember that investment strategy starts with your own personal goals; we recommend staying invested for the long term, staying diversified, and speaking with an advisor about adjustments that may be needed.”
“As we look ahead, we see the potential for a new phase of economic and market growth, powered by AI innovation, infrastructure investment, energy transformation, and global shifts in defense and technology.”
“Capital spending on AI and data infrastructure is accelerating, corporate earnings continue to surprise, U.S. consumers remain resilient, and investors are beginning to rotate back into equities with record cash still on the sidelines.”
CNBC's "The Exchange" team discusses the outlook for markets in 2026 with Chris Hyzy, chief investment officer for Merrill and Bank of America Private Bank.
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