Which Sectors are the Superstars of 2026? The Midyear Market Reality Check.

Which Sectors are the Superstars of 2026? The Midyear Market Reality Check.
Why have silver and crypto dropped so much? Should we capture gains at an all-time high?


Below are the things I’ll cover in this blog. Watch or listen to my Mid-Year Report on Youtube and Substack.

1. Market Surprises and the Hard Truth About the Magnificent Seven
2. The Golden Rules of 401Ks, IRAs and Investing
3. Decoding Crypto Cycles, Commodities, and Illiquid Traps
4. Navigating Passive Income Safely
5. Individual Stocks & Your Vegas Money

 

1. Market Surprises and the Hard Truth About the Magnificent Seven
The biggest surprise of the year is the massive breakout performance of clean energy, which was up almost 20% in 2026 (as of July 2), compared to gains of 9.1% in the S&P500. While traditional oil headlines dominated popular news, clean energy quietly secured the top performing spot. This structural shift is driven primarily by artificial intelligence and massive data center expansions. Data infrastructure consumes an immense amount of electricity. Tech giants with strict net-zero emissions mandates are scrambling to satisfy these soaring energy needs through renewable power infrastructure. Consequently, clean energy has evolved into a premier institutional growth engine.

Conversely, most of the highly celebrated "Magnificent Seven" tech stocks have severely lagged behind broader market benchmarks. Five out of these seven tech giants underperformed or declined significantly. Mega-caps like Meta, Microsoft, and Tesla dropped in value, while Nvidia posted gains of 4.5% – half that of the S&P500. The primary issue is not the fundamental viability of these companies, but their bloated valuations. Driven by aggressive margin trading and institutional leverage, these stocks became notably expensive. When macroeconomic conditions signal a growth cooling phase, hyper-leveraged assets pull back first. The plunge can be steep and swift.
 
Tesla’s challenges are different from Nvidia. While Nvidia is enjoying year over year revenue growth of 85% and profit margins 71.5%, Tesla’s net profit compressed from $15 billion down to under $5 billion within a two-year window due to aggressive electric vehicle price wars. The Tesla Model Y remains the top-selling electric vehicle in the world. However, China’s BYD is the world’s largest overall EV manufacturer by volume. With many Chinese EV competitors selling at a lower price than Tesla without sacrificing quality, Tesla has been forced to cut their prices.


2. The Golden Rules of 401Ks, IRAs and Investing
While Buy & Hope is still largely touted by the mainstream media, riding the Wall Street roller coaster is far too perilous for this last-century strategy to be effective. The best defense against recessions and corrections is to have an age-appropriate, properly diversified wealth plan in place, and to capture gains 1-3 times a year to ensure you keep your wealth intact. Equally important to a properly diversified plan are to have exposure to growth (the Magnificent 7) and value (without the paper losses) and hot industries. We need a self-directed 401K and/or personal retirement accounts (IRAs) to give us more options.
 
Rebalancing helps to keep us on the right side of the trade. Rebalancing also serves as a built-in "buy low, sell high" system operating completely on autopilot. When an aggressive asset slice surges and over-allocates your portfolio, the pie chart screams at us to capture gains. For instance, if a high-performing commodity choice triples or quadruples in value, we are prompted to sell high, to lock in profits while maintaining our core foundational slice (if we still believe the commodity will remain hot in the future). If that asset subsequently drops, we have successfully locked in our gains and can then selectively reinvest at deeply discounted prices. (Most people don’t buy low because they can’t; they’ve lost too much money.)
 
Portfolios should be rebalanced 1-3 times per year. How long has it been since you rebalanced your wealth plan? Optimal rebalancing times include directly after a winter Santa rally or following a major spring market expansion. Managing our asset allocations systematically prevents the catastrophic compounding losses that typically plague unmanaged portfolios during deeper economic recessions.

3. Decoding Crypto Cycles, Commodities, and Illiquid Traps
Precious metals and digital assets require a highly tactical approach. Bitcoin remains heavily correlated to its four-year halving cycle. Historically, the asset surges to all-time highs in the year directly following a halving event. However, the second-year post-halving typically initiates a prolonged "crypto winter" phase that can depress prices by 50-70% for 18 to 24 months. This structural cycle suggests digital assets may face near-term weakness over the next 12 months before entering their next major recovery phase. The problem with waiting it out – with hoping to make up losses – is that if we’ve bet the farm, most of us cannot endure having our net worth drop by 70%. (A million dollars becomes just $300,000.) Our FICO score drops. We might have trouble paying our bills. If we have debt, we’ll get eaten alive by compounding interest and incessant calls from the debt collector. We might have put our home at risk.
 
Hard assets like gold and silver are also volatile by nature. After the 2011 highs of gold and silver, precious metal prices dropped by up to -40% (-70% for silver) and stayed in that range until the pandemic. The precious metals bear market after the highs of 1980 lasted a quarter of a century. While we might see or hear that gold never loses its value, that’s simply not factual. It’s a false claim made by a business that wants to sell us gold or silver, often at or near an all-time high. During the bear markets for precious metals, these claims are not widely circulated. Additionally, precious metals do not yield regular cash flow. If interest rates march higher, capital often shifts away from metals toward yield-bearing bonds.
 
Other popular ads encourage us to jump into high-yield savings accounts or investments. Aggressive email and social media marketing campaigns frequently use scare tactics or deepfake celebrity endorsements to pitch highly volatile products that are sold as “safe.” Investors must exercise extreme caution regarding high-yield alternative investment vehicles and even some high-yield savings accounts. Private credit funds and alternative real estate trusts frequently mask deep structural flaws. Many of these funds hide junk bonds inside their portfolios and are highly illiquid. When market stress appears, these private entities routinely implement withdrawal "gates," legally preventing you from accessing your principal cash. Some funds restrict withdrawals to just 10% of total investors. Additionally, private equity oil and gas LLCs bait retail investors with 9% to 13% interest promises. In reality, many are unlisted stocks managed by unproven operators, where high commissions are paid to salesmen who are not fully disclosing all of the risks or encouraging investors to read the fine print.

4. Navigating Passive Income Safely
Generating sustainable passive income requires understanding that higher advertised dividend yields are highly correlated with higher underlying risk of losing principal on your investment or a default by the company. Reaching blindly for yield is a fatal portfolio mistake. As Will Rogers once said, “I’m more concerned with the return of my money than the return on my money.”
 
When evaluating dividend-paying corporate equities, focus on value replacement structures rather than distressed companies trying to lure investors with so-called high-yield payouts that might be offering less income than other highly rated countries. For example, over half of the S&P500 is at or near junk bond status, including a lot of U.S. banks. Diversifying internationally into higher-performing value funds, such as specialized indexes in Peru and other countries, can deliver stronger dividend payouts alongside excellent underlying capital growth. The Peru ETF in our sample investing pie chart was a superstar of 2025 and this year as well, earning gains of 82.7% and 16%, respectively, while offering a higher yield than the comparable U.S. based ETF.

For the bond/safe side of our portfolio, many bonds are illiquid and losing value. Bonds lost more than stocks in 2022, -26%, and haven't recovered. I'm hosting a Bonds and Income Without Paper Losses Masterclass on Oct. 17, 2026, the Saturday after my next Financial Freedom Retreat. Email [email protected] to learn more and register now. Prerequisite: Financial Freedom Retreat.
 
5. Individual Stocks & Your Vegas Money
For the speculative portion of our portfolio—which I like to refer to as "Vegas money"—emerging disruptive technologies offer fascinating entry points, if managed carefully. The electric air taxi industry is positioned to disrupt urban aviation corridors that were previously monopolized by gas-guzzling helicopters. Key innovators like Joby Aviation and Archer Aviation are progressing rapidly through the final phases of Federal Aviation Administration (FAA) certification for vertical takeoff aircraft (EVTol). Archer has secured positioning as the official air taxi infrastructure partner for major regional events, while Joby has successfully validated rapid test flights in dense metro hubs.
 
At the same time, individual stocks can be volatile and subject to macro economic trends. The pie chart method I discuss above and teach at my Financial Freedom Retreats uses ETFs to minimize risk, which make it easy to see and capture gains in a systematic way. Individual stocks require:  
 

• Babysitting,
• Understanding that we are competing with hedge funds and institutional investors who have strategic advantages over the retail investor, and,
• Having a buy low, sell high mentality.

 
That’s a lot more work than many of us are willing or qualified to do. So, if we do choose to compete with Wall Street pros on something we think is hot, it’s best to gamble with money we’re willing to lose, rather than betting our nest egg.

Bottom Line
Navigating modern financial markets requires moving past media hype and online marketing “opportunities.” Marketing professionals frequently tap into our emotions to sell snake oil. (The celebrity Kim Kardashian was fined $1.26 million on Oct. 3, 2022, by the SEC for touting a crypto scam.) High-flying tech sectors can experience steep valuation corrections, while overlooked sectors quietly break out. Relying entirely on yesterday's winners exposes our wealth to unnecessary downside risk. True financial freedom is built on timeless, systematic strategies rather than speculative guesswork. Fortunately, our team has made these systems as easy as a pie chart.
 
The ultimate key to enduring financial prosperity is ensuring our wealth plan remains safe, hot, and diversified. By executing disciplined portfolio rebalancing 1-3 times a year and self-directing our investments inside tax-advantaged accounts, such as Roth IRAs, we are employing the wealth strategies of the 1% – eliminating capital gains liabilities and bypassing the emotional pitfalls of market volatility. True financial freedom can be achieved with our time-proven 21st Century investing and budgeting strategies. I encourage you to join us at our next Financial Freedom Retreat to learn the life math that we all should have received in high school. If you're a busy professional and you'd prefer an unbiased 2nd opinion, I offer that in my private coaching. Email [email protected] to learn more.
 
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Are you aware that the hot funds we've been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Clean energy scored 44%... 

Why not treat yourself to the gift of financial freedom and a green wealth plan?
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Register now to join us at our online Financial Freedom Retreat Oct. 10-12 2026 where you'll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto and more, and how to be in the best seat during our volatile Debt World. Register by July 31 to receive the best price. (Ask for access to a recording of our Wealth Secrets of the 1% or our Real Estate masterclass as our gift to you.) Email [email protected] to learn more and register now.

If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 4-11, 2027. (With just three rooms still available, this exclusive, private, bucket-list is almost sold out!) Call 310-430-2397 or email [email protected] to learn more. The 2025 Restormel Retreat was a magical and royal experience. Click to learn more. 

Request testimonials at [email protected]. You can also view some on the flyer page of the retreat. 

Learn how to:

* Invest in hot industries, such as Nvidia, artificial intelligence, and chips,
* Save thousands annually with smarter big-ticket choices
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* Invest and compound your gains,
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* Easy and efficacious nest egg strategies,
* Get hot and diversified (including in artificial intelligence, quantum computing and crypto),
* Evaluate stocks,
* Avoid capital gains and financial predators,
* Keep an age-appropriate amount safe, and,
* Know what's safe in a Debt World.

Yes, it's a complete money makeover. 
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Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com. ​

"Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM
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This is why I recommend them with enthusiasm." 
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If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information.

Email [email protected] for pricing, additional information and to register. Register by July 31, 2026 to receive the best price.

Join us for our Restormel Royal Immersive Adventure Retreat. Spring Equinox 2027. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. Register now to receive two 12-month all-access passes to our online training and four private, prosperity coaching sessions. There are only 3 rooms available. Considering the perks, you're receiving a 65% discount to learn the life math that we all should have received in high school, and the room is free! Email [email protected] to learn more. Yes, it's a great idea to register and start transforming our lives now with the online ABCs of money courses.

Natalie Wynne Pace is an Advocate for Sustainability Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money (6th edition) and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of The ABCs of Money for College are the most recent releases of these books. Follow her on Instagram. 
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Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.​​

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Check out Natalie Pace's Substack podcast and watch videoconferences and webinars on Youtube.

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Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly-traded companies, funds or projects mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge, patience and diversified strategy.  
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Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.