This Mega Trend Could Deliver Massive Upside for Investors in 2026 (And It's Not AI)

"The artificial intelligence revolution has turned out to be one of the most important and influential trends in the market we've seen in a very long time. Indeed, since the rise of the internet, I can't think of a technology that has the potential to reshape society in terms of how we all live and work in a similar way to AI."

"We've already seen the Trump administration step into the fray in Venezuela, capturing the current president and looking to impose the administration's will on the current administration in the South American country, in a bid to shift oil flows globally. The implications of this move from an energy standpoint are significant, and any future action taken against other oil-producing nations such as Iran could further provide some volatility in the market for investors who have significant exposure to oil stocks."

"That said, I'm going to steer clear of AI and all its associated benefits and potential headwinds in 2026, and highlight one key trend I see as being perhaps just as influential for investors looking to benefit from sector-specific upside in 2026. I'm of the view that one trend which has the potential to overshadow AI as the discussion point of the year could be global weapons stockpiling ahead of more major conflicts in 2026."

Artificial intelligence is a transformative market trend with major societal and economic implications. Attention shifts from AI to rising defense demand as the primary investable theme for 2026. Global weapons stockpiling ahead of potential major conflicts could drive renewed growth across the defense sector. Recent U.S. actions in Venezuela and the possibility of actions against oil producers like Iran create meaningful energy-market volatility that can affect oil-exposed investors. Continued escalation of rhetoric or actions by China or Russia toward Taiwan, Ukraine, or other nations would amplify geopolitical risk and likely benefit defense contractors. U.S. defense stocks retain strong global competitive positioning.

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