2026 Mid-Year Market Review: Did Our Predictions Hold Up?

Jeff Kikel • July 13, 2026

2026 Mid-Year Market Review: Did Our Predictions Hold Up?

Key Takeaways: At the midpoint of 2026, the S&P 500 sits near 7,482, up from 6,721 on December 17, 2025, a gain of roughly 11 percent in about seven months. In this mid-year review we grade our own December calls, score the big Wall Street price targets, and walk through which sectors are leading and lagging so far.

Most market predictions get made in January and quietly forgotten by summer. We do it differently. Twice a year we pull up the exact numbers and sector calls we made and check them against reality, out loud. If you want an honest scorecard instead of another confident guess, this mid-year review is for you.

Did the big banks get 2026 right?

Every January the major banks publish year-end S&P 500 targets, and every year the spread between them is enormous. Some houses came into 2026 cautious, and so far those cautious calls have looked too low as the market pushed higher.

We pay close attention to a small number of research shops we respect and treat much of the rest as noise. The lesson is not that any one bank is always right. It is that a wall of conflicting targets is not a plan, and following the most pessimistic voice would have kept you on the sidelines during a strong first half.

How did our own December predictions hold up?

Here is the part most shows skip. Back on December 17, 2025, with the S&P 500 at 6,721, we laid out a base case, a bull case, and a bear case for the year.

Today the index is around 7,482. That is more than 750 points higher, or about 11 percent, in roughly seven months. Honestly, that is faster than our base case expected. We did not think we would be up double digits by mid-year.

Being accountable means saying that plainly. We note what we got right, and we admit what surprised us, rather than rewriting the story after the fact.

Which sectors are winning at the midpoint of 2026?

The gains this year have not been evenly spread. A handful of areas have done the heavy lifting.

Biotech has been strong, including the broad biotech baskets. Defense and aerospace have held up well. Industrials have participated in the move. Select 5G and technology names have contributed. And clean energy has been a standout, which was not the consensus pick coming into the year.

The clean energy result is a good reminder that the most contrarian call on the board can end up leading the pack.

Which sectors are lagging?

Not everything has worked. Consumer discretionary has been softer, real estate has lagged, and the large scale pure AI infrastructure names have underperformed the broader market even as AI stays in every headline.

That gap between the story everyone is telling and where the money is actually being made is exactly why a mid-year check matters.

What are we watching for the rest of 2026?

Our views for the back half of the year have not changed much. We would rather stay disciplined than chase, and we will publish another full scorecard in December so you can hold us to it again. The point of a review like this is not to brag and not to panic. It is to keep score honestly so you can make calmer decisions.

Frequently asked questions

What was the S&P 500 doing at mid-year 2026?
Around 7,482, up from 6,721 on December 17, 2025, a gain of roughly 11 percent in about seven months.

Which sectors performed best in the first half of 2026?
On our scorecard the leaders included biotech, defense and aerospace, industrials, select 5G and technology names, and clean energy, which was the biggest surprise.

Which sectors lagged?
Consumer discretionary, real estate, and the large scale pure AI infrastructure names underperformed the broader market.

Do Wall Street year-end price targets matter?
They are worth knowing, but the range between banks is usually wide, and the most cautious targets would have kept you out of a strong first half. Treat them as one input, not a plan.

Should I change my portfolio based on a mid-year review?
A review is for perspective, not a signal to trade. Your own situation, timeline, and taxes matter more than any single call. Talk with your own licensed financial or tax professional before making changes.

When is the next update?
We will publish a full year-end scorecard in December 2026.

The Bottom Line

The first half of 2026 rewarded staying invested and being selective. The S&P 500 climbed from 6,721 to about 7,482, a handful of sectors did most of the work, and the loudest story in the market was not the biggest winner. If you want the honest, twice-a-year scorecard rather than one-way hype, subscribe to The Cents of Things and we will see you for the December review.

Source: per Jeff Kikel and Ron Lang's mid-year review on The Cents of Things (recorded July 2026), the S&P 500 stood at approximately 7,482, up from 6,721 on December 17, 2025.

Podcast cover with two men, bold text “The Bond Bullies Are Back,” and gold financial graphics on a yellow background
By Jeff Kikel August 25, 2026
The US crossed 40 trillion dollars in debt and the 30-year yield hit its highest since 2007. Why safe bonds are suddenly competing with your stocks.
Graphic asking “Is the stock market in a bubble?” with bull, bubble, and red upward arrow
By Jeff Kikel August 13, 2026
Jeff Kikel and Ron Lang discuss the weak jobs report, cooling CPI and PPI inflation and the Yen Carry Trade
 The 401(k) tax trick high earners miss on a blue-and-white banner with city skyline.
By Jeff Kikel August 10, 2026
Learn how Net Unrealized Appreciation (NUA) can reduce taxes on company stock in your 401(k), the rules you must follow, and when it may make sense.
Podcast-style graphic: “Bad Jobs—Good News for Stocks, Not So Fast,” with two men in suits on yellow-black background
By Jeff Kikel August 7, 2026
A weak jobs report ended the Fed hike bet, but the yen carry trade is the quiet risk under the market. What it is and why it matters to your portfolio.
Image with downtown tokyo in the background and the words
By Jeff Kikel August 4, 2026
The yen carry trade explained in plain English: what it is, why it can rattle U.S. stocks when it unwinds, and what long-term investors should actually do about it.
By Jeff Kikel July 16, 2026
Key Takeaways: About 66% of large-cap US equity funds have trailed the S&P 500 over the last three years. On this week’s Cents of Things, I explain how I think about that as a portfolio manager: an index core, a disciplined sleeve of individual names, and cash ready for the days the market hands you a gift. I manage money for real families, so I look at a week like this one through a simple lens: what changes how I build and hold portfolios, and what is just noise. Here is how I read it.
College Planning can be helped with Merit Scholarships
By Jeff Kikel July 29, 2023
This article provides four simple yet effective tips to help high school seniors maximize their chances of winning a private scholarship. From knowing your audience to crafting a personal and passionate essay, this article will guide your student through the scholarship application process. With the right approach, your student can stand out from the competition and secure the college funding they need. Read on to learn more.
Are You Interested in real estate, but do not want to be a landlord?
By Jeff Kikel July 12, 2023
Dive into the dynamic world of real estate investing without the hassle of property management. This post explores five accessible avenues - REITs, Groundfloor, Fundrise, P2P lending, and wholesaling - enabling you to capitalize on real estate opportunities without ever needing to clean toilets. Perfect for both novice and seasoned investors, our guide presents an uncomplicated roadmap towards achieving financial independence through smart, hands-off real estate investments. Expand your wealth strategy toolkit with FreedomDayWealth.com's insights and discover the true freedom of passive income generation.
Jeff Kikel reflects on one year after his Freedom Day.
By Jeff Kikel July 4, 2023
🎉 One Year Into Freedom: A Whirlwind of Emotions! 🎉 Dive into this candid and humorous recount of a year since achieving Freedom Day! 🚀 From being wrapped up in red tape to building a Bucket List GPS for happiness, this blog post has it all. 💡Discover why it's okay to take your time settling into a work-optional lifestyle, and how Freedom Day is the ultimate spring cleaning for your soul. 🧹 Don't miss the quirky insights and heartwarming reflections. #FreedomDay #WorkOptional #BucketListBliss"