Unhedged Can 2026 match 2025?
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Dec 11, 2025 
Ian Smith, Senior Markets Correspondent at the Financial Times, joins Katie Martin and Robert Armstrong to dissect the surprisingly robust US stock market of 2025 and its outlook for 2026. They discuss how corporate earnings and AI advancements fueled gains, while also exploring the geopolitical influences like Trump’s tariff backtracking. Risks abound, from a potential AI bubble to inflation resurfacing. Ian humorously shorts K-pop Demon Hunters, contrasting it with value stocks, as they all ponder the implications of market consensus and investor sentiment.
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Taco Trade Became A Meme
- Robert Armstrong's 'taco trade' joke became a market meme after Trump backed off tariffs in 2025.
- Rob describes Taco the Reindeer as the show's mascot born from that moment.
AI Needs Proof Points Next Year
- The biggest risk is an AI froth correction; weak projects may fail though core firms like NVIDIA may hold value.
- Ian Smith says next year will need AI proof points showing productivity or consumer willingness to pay.
Inflation Is The Wild Card
- A return of inflation would wreck the consensus bull case by preventing the expected Fed rate cuts.
- Katie Martin warns a new Fed chair under political pressure could exacerbate risks if inflation re-emerges.