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The upward momentum in the U.S. stock market has been strong, with the S&P 500 finishing 2025 up about 16%. But according to veteran investor and economist Marc Faber, 2026 won’t be sunshine and rainbows — far from it.
When asked what he expects 2026 to bring in a recent interview with Wealthion, Faber didn’t hesitate: “It will be doom.”
His concern stems from decades of money printing and inflation — not just in the cost of living, but also in what he describes as “badly inflated” asset prices over the “last 40 years or so.”
One factor he believes could rattle U.S. stocks this year is interest rates.
“In my view, this year we’ll get a big breakout of interest rates either up or down and the stock market will not like it,” he said.
Markets typically cheer lower rates — so why does Faber think stocks won’t like rates moving in either direction?
He explained that interest rates “are not particularly high” at present, with the 10-year Treasury yielding roughly 4%. At the same time, he doesn’t believe the cost of living is rising at just 4% a year, but rather “between 6% and 12%.”
“So the interest rate is not high in real terms and that is an inflationary environment,” Faber said. “And I believe that the only way interest rates would go down significantly is… we are overestimating growth,” he said.
With the U.S. stock market sitting near all-time highs, the word “bubble” is starting to surface — and Faber says investor behavior is a key warning sign.
“Most people own Tesla and Nvidia around the world,” he said. “They trade them 24 hours a day. And they trade options and all kinds of products. Leverage is a symptom of excessive money in the system and of a bubble.”
Faber says he expects a correction in stocks, but the stock market isn’t the only place where he sees excess. For many Americans, their home is the largest asset they own — and Faber believes trouble is brewing there as well.
“For the middle class the bulk of the assets is residential real estate and that I think will go down because it’s in a colossal bubble as well,” he said.
Faber’s concerns aren’t limited to markets alone. He also warned that political intervention could worsen an already fragile outlook — including under President Donald Trump.
“I would have voted for Mr. Trump any time compared to the Democrats, but he is an ignorant interventionist,” Faber said. “He intervenes in everything and sooner or later he’ll make a major disaster.”
So with such dire predictions, what about simply holding cash?
That’s not Faber’s preference either. He argues bluntly that “all currencies are bad — all paper monies are bad” — a view consistent with his long-standing warnings about inflation eroding purchasing power.
The silver lining? Faber also shared what he does feel confident holding — an asset class he believes could continue to rise even as other markets falter.
Faber has never been shy about his love for precious metals — and in moments like this, he leans into them with even more conviction.
“I feel more comfortable to own silver and gold and platinum,” he said.
Gold and silver have long been viewed as safe-haven assets. Unlike fiat currencies, they can’t be printed at will by central banks and their value isn’t tied to any single country or economy. That scarcity, combined with their history as a store of value, is why investors often flock to the metals during periods of inflation, economic turmoil or geopolitical instability — pushing prices higher.
Those forces have already fueled powerful rallies. When asked whether the recent run-up in precious metals could continue, Faber didn’t hesitate, responding with a simple “Yes.”
He added that despite gold’s increasing popularity, most people still “have very little gold” as a percentage of their total assets.
That view is echoed by Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates. Dalio told CNBC last year that “people don’t have, typically, an adequate amount of gold in their portfolio,” adding that “when bad times come, gold is a very effective diversifier.”
And they’re not alone. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.
Precious metals IRAs allow investors to hold physical gold, silver or other related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold and silver, making it an option for those looking to help shield their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
While Faber has issued a dire warning for U.S. stocks broadly, he still favors one specific category — companies that return a generous amount of cash to shareholders.
“I own gold…. but I like cash flow. I like high-dividend stocks. I like stocks that have a dividend yield of 7% or 10%,” he said.
Faber argues that with the power of compounding, dividends can significantly amplify returns over time.
“The impact of compounding interest rates is gigantic. I mean, if you’re born and you have an uncle and so forth and if he gives you just a thousand francs and you put it at 4% per annum, you die very rich,” he said.
Of course, dividend investing isn’t just about chasing the highest yield. If a company can’t generate enough free cash flow to sustain its payout, the dividend may be cut — which can hurt both income and share price.
For investors unsure where to begin, platforms like Moby aim to simplify the process. Their team of former hedge fund analysts does the heavy lifting — breaking down the market, flagging quality stocks and making the research easy to digest.
In fact, across nearly 400 stock picks over the past four years, Moby’s recommendations have beaten the S&P 500 by almost 12% on average. Their research keeps you up-to-the-minute on market shifts and takes the guesswork out of choosing investments.
Seasoned investors — like Faber and Dalio — often stress the importance of diversification — and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.
That message feels especially relevant today. Nearly 40% of the S&P 500’s weight is concentrated in its ten largest stocks and the index’s CAPE ratio hasn’t been this high since the dot-com boom.
This is why many investors look beyond the usual mix of stocks and bonds. Alternative assets — from precious metals and private equity to collectibles — can help reduce risk and broaden a portfolio’s sources of return.
But there’s one store of value that routinely flies under the radar: It’s scarce by design, coveted worldwide and frequently locked away by institutions.
We’re talking about post-war and contemporary art — a category that has outpaced the S&P 500 with low correlation since 1995.
It’s easy to see why art pieces often fetch new highs at auctions: The supply of the best works of art is limited and many of the most desirable pieces have already been snatched up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, purchasing art has been a domain reserved for the ultra-wealthy — like in 2022 when a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history (2).
Now, Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy — can help you get started with this asset class. It’s easy to use and, with 25 successful exits to date, Masterworks has distributed more than $65 million in total proceeds (including principal).
Note that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at masterworks.com/cd.
At the end of the day, everyone’s financial situation is different — from income levels and investment goals to debt obligations and risk tolerance — which means the best move for someone else might not be the best move for you.
Advisor.com is an online platform that matches you with vetted financial advisors suited to your unique needs. They can help tailor a strategy to your particular financial situation, whether you’re looking to grow wealth, diversify beyond stocks or plan for long-term financial security.
Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.
