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1. UK equities set the stage for a 2026 earnings rebound.

Strategists are pointing at a record valuation discount to other regions, a higher dividend yield, and a comparatively lower sensitivity to tariff turmoil.

Investors have yet to shake off their pessimism. A Bank of America fund manager survey last week showed a net 19% of global investors were underweight UK equities, close to an 18-month high.

2. S&P 500 Shiller P/E (CAPE) ratio exceeded 40x, the highest level since the 2000 Dot-Com bubble burst.

At the same time, US households’ equity allocation jumped to ~45%, the highest ever.

3. Quantum computing firms jump after report of US government stake talks.

The quantum industry spiked, after a Wall Street Journal report that Uncle Sam was not stopping at rare earths and semiconductors: Captain America needs to lead with quantum-enabled chips.

Quantum computers are seen as a critical next-generation technology because they can quickly perform computations that would take today’s computers eons. That sort of advance could make it easier to find new drugs, materials and chemicals while making every segment of the economy more efficient, experts say.

Google said Wednesday its Willow chip, the science fiction-like device that started the quantum craze a year ago, can run 13,000X faster than supercomputers.

4. Tesla is religion.

The majority of Tesla’s value lies in hopes for what the company hasn’t done yet, like building a massive Uber-like ride-hailing service with its own self-driving Cybercabs, or putting a walking, human-sized robot in every home. Which is why expenses like R&D keep going up even as revenue has trended down this year.

5. “Healthcare is set to outperform”, says Morgan Stanley.

“A rate cutting environment should be a positive tailwind for Healthcare's relative performance and its M&A cycle. Further, policy headwinds are easing and valuations are historically cheap.

Importantly, absolute earnings revisions breadth across groups in Healthcare has accelerated and is in positive territory, meaning there are now more upward than downward estimate revisions for the out-year period.”

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