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Upward momentum in the US stock market has been strong, with the S&P 500 ending 2025 up about 16%. But according to veteran investor and economist Marc Faber, 2026 won’t be sunshine and rainbows – far from it.
When asked what he expects 2026 to bring in a recent interview with Wealthion, Faber didn’t hesitate: “It’s going to be doom.”
His concern stems from decades of money printing and inflation — not just in the cost of living, but also in what he describes as “badly inflated” asset prices over the “last 40 years or so.”
One factor he believes could shake US stocks this year is interest rates.
“In my view, we’re going to have a big break in interest rates either up or down this year, and the stock market isn’t going to like it,” he said.
Markets typically encourage lower rates – so why does Faber think stocks won’t like rates moving in either direction?
He explained that interest rates are “not particularly high” right now, with the 10-year Treasury hitting about 4 percent. At the same time, he doesn’t think the cost of living is rising at just 4% a year, but rather “between 6% and 12%.”
“So the interest rate is not high in real terms and this is an inflationary environment,” Faber said. “And I think the only way interest rates would come down significantly is … we overestimate growth,” he said.
With the US stock market nearing all-time highs, the word ‘bubble’ is beginning to surface – and Faber says investor behavior is a key warning sign.
“Most people own Tesla and Nvidia around the world,” he said. “They trade them 24 hours a day. And they trade options and all kinds of products. Leverage is a symptom of excessive money in the system and a bubble.”
Faber says he expects a correction in stocks, but the stock market isn’t the only place he sees excesses. For many Americans, their home is the largest asset they own—and Faber believes there are problems there, too.
“For the middle class, most of the assets are residential real estate, and I think they’re going to go down because they’re also in a colossal bubble,” he said.
Faber’s concerns are not limited to markets. He also warned that political intervention could worsen an already fragile outlook — including under President Donald Trump.
“I would have voted for Mr. Trump any time over the Democrats, but he’s an ignorant interventionist,” Faber said. “He intervenes in everything and sooner or later he will make a major disaster.”
So with such dire predictions, how about simply holding cash?
That’s not Faber’s preference either. He flatly argues that “all currency is bad – all paper money is bad” – a view consistent with his long-standing warnings about inflation’s eroding purchasing power.
The silver lining? Faber also shared what he believes he’s confident holding — an asset class he believes could continue to rise even if other markets falter.
Faber has never been shy about his love of precious metals – and in moments like this, he approaches them with even more conviction.
“I feel more comfortable owning silver, gold and platinum,” he said.
Gold and silver have long been considered safe-haven assets. Unlike fiat currencies, they cannot be printed at will by central banks and their value is not tied to any country or economy. That scarcity, combined with their history as a store of value, is why investors often turn to metals during times of inflation, economic turmoil or geopolitical instability — pushing prices higher.
These forces have already fueled strong rallies. When asked if the recent rally in precious metals could continue, Faber didn’t hesitate, answering with a simple “Yes.”
He added that despite gold’s growing popularity, most people still “have very little gold” as a percentage of their total assets.
This point of view is echoed by Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates. Dalio told CNBC last year that “people typically don’t have an adequate amount of gold in their portfolio,” adding that “when bad times come, gold is a very effective diversifier.”
And they are not alone. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.
One way to invest in gold and silver that also offers significant tax advantages is to open a precious metals IRA with Thor Metals.
Precious metals IRAs allow investors to hold physical gold, silver or other related assets in a retirement account, thus combining the tax advantages of an IRA with the protective benefits of investing in gold and silver, making it an option for those who want to help protect their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on eligible purchases.
Read more: Approaching retirement with no savings? Don’t panic, you are not alone. Here are 6 easy ways to catch up (and fast)
While Faber issued a dire warning for U.S. stocks in general, he still favors one specific category — companies that return a generous amount of cash to shareholders.
“I own gold … but I like cash flow. I like high dividend stocks. I like stocks that have a 7% or 10% dividend yield,” he said.
Faber argues that with the power of compounding, dividends can significantly amplify returns over time.
“The impact of compound interest is gigantic. I mean, if you’re born and you have an uncle and so on and he just gives you a thousand francs and you put it at 4% a year, you die very rich,” he said.
Of course, dividend investing isn’t just about chasing the highest yield. If a company can’t generate enough free cash flow to support its payout, the dividend can be cut – which can affect both income and share price.
For investors who aren’t sure where to start, platforms like Moby aim to simplify the process. Their team of former hedge fund analysts does the hard work – breaking down the market, flagging quality stocks and making the research easy to digest.
In fact, over nearly 400 stocks over the past four years, Moby’s recommendations have outperformed the S&P 500 by nearly 12% on average. Their research keeps you on top of market changes and takes the guesswork out of choosing investments.
Plus, their reports are easy for beginners to understand, so you can become a smarter investor in just five minutes.
Seasoned investors – like Faber and Dalio – often stress the importance of diversification – and for good reason. Many traditional assets tend to move in tandem, especially during times of market stress.
This message feels especially relevant today. Nearly 40 percent of the S&P 500’s weight is concentrated in its ten largest stocks, and the index’s CAPE ratio hasn’t been this high since the dot-com boom.
This is why many investors are looking beyond the usual mix of stocks and bonds. Alternative assets – from precious metals and private equity to collectibles – can help reduce risk and expand a portfolio’s sources of return.
But there’s a store of value that routinely flies under the radar: It’s rare by design, coveted around the world, and often blocked by institutions.
We’re talking about postwar and contemporary art—a category that has outperformed the S&P 500 with a low correlation since 1995.
It’s easy to see why pieces of art often reach new heights at auction: the supply of the best works of art is limited, and many of the most desirable pieces have already been snapped up by museums and collectors. This scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, buying art was a domain reserved for the ultra-rich – as in 2022, when an art collection owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history (2).
Now, Masterworks – a platform for investing in high-end artwork stocks by renowned artists including Pablo Picasso, Jean-Michel Basquiat and Banksy – can help you get started with this asset class. It’s easy to use, and with 25 successful releases to date, Masterworks has distributed over $65 million in total revenue (including principal).
Simply browse through their impressive portfolio of charts and choose how many shares you want to buy. Masterworks can handle all the details, making investing in high-end art both affordable and effortless.
The new deals sold out in minutes, but you can skip the waiting list here.
Note that past performance is not indicative of future returns. Investment involves risk. See Reg A disclosures at masterworks.com/cd.
At the end of the day, everyone’s financial situation is different—from income levels and investment goals to debt obligations and risk tolerance—which means the best move for someone else might not be the best move for you.
If you’re not sure where to start, now might be the right time to connect with a financial advisor through Advisor.com.
Advisor.com is an online platform that matches you with vetted financial advisors tailored to your unique needs. They can help you tailor a strategy to your particular financial situation, whether you’re looking to grow your wealth, diversify beyond stocks, or plan for long-term financial security.
Once you’re paired with an advisor, you can book a free, no-obligation consultation.
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@Wealthion (1); Christie’s (2)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
