Expect the AI trade to be less dominant in 2026, says Peter Boockvar

Summary

Peter Boockvar, CIO of OnePoint BFG Wealth Partners, joins Squawk Box to discuss his 2026 outlook. He expects the AI tech trade to become less dominant as investors differentiate winners and losers, creating room for international stocks, small- and mid-caps, and a broadening commodity bull market led by industrial metals. He also warns that central bank cuts are not lowering long-end rates, US debt and deficits matter for Treasuries, and a 10-year yield move to 4.5%-5% could compress S&P 500 multiples.

• Boockvar says the AI tech trade is losing dominance in 2026.
• He sees continued outperformance potential in international stocks.
• He expects small- and mid-cap stocks to keep participating as breadth improves.
• He views commodities as being in a bull market, currently led by industrial metals and likely to broaden.
• He says rate cuts are not bringing down long-end rates globally.
• He sees US debt and deficits as a growing risk for long-duration Treasuries.
• He warns S&P 500 multiples could contract if the 10-year yield reaches 4.5%-5%.