Name: The consumer is still in 'good shape', feel good about the economy, says Regions' Alan McKnight
Uploaded: 2026-01-08T21:34:17+00:00
Duration: 320 s

Speakers

Alan McKnight — CIO, Regions Wealth Management

Richard Bernstein — CEO and Chief Investment Officer at Richard Bernstein Advisors

Summary

Alan McKnight and Richard Bernstein discuss the 2026 market outlook on Closing Bell Overtime. McKnight sees the consumer and economy in good shape and views market broadening as positive. Bernstein favors boring investments such as dividends and international diversification, avoids corporate credit at tight spreads, and holds gold as portfolio insurance.

Stocks started the year higher, with small caps leading and market breadth improving.
Alan McKnight says the consumer and underlying economy remain strong despite company-specific volatility like GM.
McKnight views broadening participation and sector highs as a net positive for equities if earnings and cash flow hold up.
McKnight says the AI trade is shifting toward peripheral opportunities, but does not name a specific trade.
Richard Bernstein recommends boring 2026 investments, including dividends and international diversification.
Bernstein says market broadening beyond the Mag-7 is a real fundamental story investors should embrace.
Bernstein avoids corporate credit because spreads are near historic tights and risk is not compensated.
Bernstein keeps a consistent gold allocation as a spare tire against uncertainty.

Ideas

Richard Bernstein CEO and Chief Investment Officer at Richard Bernstein Advisors 1:34

Dividends offer overlooked compounding for boring portfolios.

Investors have forgotten about dividends and the power of compounding them over time. For 2026, he favors boring fundamental investments, including dividend-paying equities.

Richard Bernstein CEO and Chief Investment Officer at Richard Bernstein Advisors 1:40

Non-U.S. equities outperform as cycle turns.

Non-U.S. markets significantly outperformed the U.S. last year and investors are ignoring it. He compares this to the early U.S. bull market in 2010-12 when U.S. outperformance was doubted, suggesting the cycle is turning and international diversification should be part of a boring fundamental allocation.

Richard Bernstein CEO and Chief Investment Officer at Richard Bernstein Advisors 2:09

Investors should embrace broadening beyond Mag-7.

Market broadening is the real fundamental story because the Mag-7 have not been the only growth stories; many other growth stories exist. He says investors should fully embrace the broadening.

Alan McKnight CIO, Regions Wealth Management 2:45

Market broadening supports equal-weight U.S. equities.

The market is broadening, with more sectors participating and nine of 11 sectors hitting new highs. If companies continue to generate earnings and cash flow, they should be rewarded even at current valuations, so the broadening is a net positive.

Richard Bernstein CEO and Chief Investment Officer at Richard Bernstein Advisors 3:45

Avoid corporate credit at historically tight spreads.

Credit spreads are near historic tights, so investors are not being compensated for credit risk. Historically, credit has not paid well when spreads are this narrow, so he carries no corporate credit risk.

Richard Bernstein CEO and Chief Investment Officer at Richard Bernstein Advisors 4:16

Hold gold as portfolio insurance.

Gold is boring but serves as a consistent portfolio allocation—a spare tire for uncertainty. Because a flat tire cannot be anticipated, he maintains gold exposure as insurance against unforeseen shocks.

The consumer is still in 'good shape', feel good about the economy, says Regions' Alan McKnight

Summary

Ideas

Up Next