As 2025 draws to a close following a robust year for markets, Canadian investors are turning their gaze to the horizon. The key question on everyone's mind: what lies ahead for portfolios in 2026? According to a prominent market strategist, the coming year is poised for a significant shift in dynamics.
A Shift from Concentration to Diversification
In a recent discussion with the Financial Post, Brian Belski, chief executive and founder of Humilis Investment Strategies, presented a compelling outlook. He argues that the market environment that characterized much of the recent past is set to evolve. Belski's central thesis is that 2026 will be marked by a 'broadening out' of the stock market.
This concept suggests that the exceptional gains, which were often concentrated in a narrow band of mega-cap technology or momentum-driven stocks, are likely to disperse. Instead, opportunities may emerge across a wider array of sectors and companies. For investors who felt the market rally was exclusionary, this potential shift represents a pivotal change in strategy.
Reassessing the Fed's Influence on Equities
Belski also offered a nuanced perspective on a topic that dominates financial headlines: the role of central banks. He posits that the United States Federal Reserve does not wield as much direct influence over stock prices as conventional wisdom suggests.
While acknowledging that Fed policy on interest rates creates important macroeconomic backdrops, Belski implies that other fundamental factors—such as corporate earnings, revenue growth, and broader economic resilience—will play a more decisive role in driving equity performance in the coming cycle. This view encourages investors to look beyond the daily parsing of central bank statements and focus on underlying business strength.
Strategic Implications for Canadian Portfolios
For Canadian investors, this forecast carries specific strategic weight. A broadening market often requires a different approach than one designed for a concentrated rally. It may necessitate reviewing asset allocation and sector weightings to ensure portfolios are positioned to capture growth from a more diverse set of winners.
The interview, conducted by Financial Post journalist Larysa Harapyn and published on December 17, 2025, serves as a critical piece of analysis as the investment community plans for the new year. Belski's insights challenge investors to think beyond the trends of the immediate past and prepare for a potentially more inclusive, though possibly more complex, market environment in 2026.
As the final days of 2025 tick by, the message for market participants is clear: adaptability and a focus on fundamentals may be key to navigating the anticipated broadening of opportunities on the horizon.
