Will Markets Revisit Fresh Highs In 2026? Earnings, Liquidity And Growth Themes

As investors debate whether fresh market highs can be revisited in 2026, the focus is shifting away from traditional large-, mid- or small-cap labels. Recent earnings trends show stronger, broader growth in select mid-cap pockets, while small-cap performance remains narrow and stock-specific. The real opportunity, however, lies in identifying structural growth spaces such as healthcare, EVs and renewables, where most leaders are still outside the large-cap universe. With interest rates easing, cost of capital declining and global liquidity expected to improve, growth-oriented sectors could see renewed traction. The key, however, is selectivity - avoiding businesses past their prime and backing category leaders with sustained earnings visibility. Over time, markets follow earnings, and spotting the right growth leaders early could be the defining strategy for 2026.