Name: If yield curve is steep, markets are in good shape for 2026: Requisite's Talkington
Uploaded: 2026-01-06T21:06:21+00:00
Duration: 210 s

Speakers

Chris Verrone — Head of Macro, Piper Sandler

Alicia Levine — Head of Investment Strategy at BNY Mellon

Bryn Talkington — Managing Partner, Requisite Capital Management

Summary

CNBC's Closing Bell panel discusses the record-setting market rally and broadening leadership. Chris Verrone highlights a cyclical pulse confirmed by transports, banks, and macro yields. Alicia Levine remains positive on risk assets, expecting financials and the other 493 S&P stocks to lead, with an 11-12% return forecast. Bryn Talkington favors DIA and RSP for diversification outside AI and into financials and industrials.

S&P 500 and Dow are at records, with Dow nearing 49,000.
Chris Verrone says cyclical sectors like transports, banks, brokers, and discretionary are showing leadership.
Alicia Levine is positive on the market, expecting financials and the other 493 stocks to catch up.
Levine sees 11-12% S&P return this year with upside if growth exceeds expectations.
Bryn Talkington recommends DIA and owns RSP to play broadening outside AI/Nvidia.
The panel cites monetary and fiscal policy in conjunction as a supportive backdrop.

Ideas

Chris Verrone Head of Macro, Piper Sandler 0:31

Cyclical pulse confirmed by sectors and macro.

A very cyclical pulse has been beating through markets since mid-October/early November. Transports are turning, banks are breaking out again, brokers and consumer discretionary are taking leadership, and the macro backdrop is confirming it through rising 10-year yields, German and Australian yield breakouts, and a firm Aussie dollar. He is positive on cyclical leadership.

Alicia Levine Head of Investment Strategy at BNY Mellon 1:07

Risk-on market; 11-12% return expected.

She has been positive on the market since April 9, believing the low was in and that this is a risk-on environment. She cites financials leading as evidence the economy is not entering a downturn, a global recovery, and coming stimulus in Q1/Q2 2026 on both consumer and corporate sides. She expects around 11-12% return this year, with possible upside if growth exceeds expectations.

Alicia Levine Head of Investment Strategy at BNY Mellon 1:17

Financials are the trade this year.

Financials are leading, and when financials lead the market is not going into a downturn. She points to the January rotation where large-cap tech sold off and capital rushed into financials, calling financials the trade this year.

Alicia Levine Head of Investment Strategy at BNY Mellon 1:55

S&P 493 catch-up via tech rotation.

The other 493 S&P 500 stocks should catch up as capital redistributes away from large-cap tech. Since mega-cap tech has an outsized market weight, broad index returns may be lower than prior years, but she sees the broadening trade as this year's opportunity.

Bryn Talkington Managing Partner, Requisite Capital Management 2:55

Own RSP and DIA for market broadening.

She sees broader participation in the market. The Dow's 30 names give diversification outside AI/Nvidia, with financials at 30% and healthcare plus industrials another 15%; investors can buy DIA for that exposure. She owns RSP, and thinks both RSP and DIA are ways to play broadening as monetary and fiscal policy work in conjunction.

This CNBC video, published January 06, 2026, features Chris Verrone, Alicia Levine, Bryn Talkington discussing XLY, KBE, IYT, BROKERS, SPY, XLF, S&P 493, DIA, RSP. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Chris Verrone, Alicia Levine, Bryn Talkington · Tickers: XLY, KBE, IYT, BROKERS, SPY, XLF, S&P 493, DIA, RSP

If yield curve is steep, markets are in good shape for 2026: Requisite's Talkington

Summary

Ideas

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