Neutral, But Far From Tranquil

Markets have delivered strong gains in 2026, supported by unusually powerful earnings growth and broad participation across large-, mid-, and small-cap stocks. But beneath the surface, risks are building. CIO Scott Opsal examines the competing forces keeping Leuthold’s Major Trend Index neutral, from strong technicals and earnings momentum to elevated valuations, concentrated AI-driven growth, and potential distortions in corporate profits.