2026 Bull Market Outlook: Jeff Hirsch of Hirsch Holdings Predicts Volatility Resolving Higher

This analysis is based on a YouTube interview with Jeff Hirsch, CEO of Hirsch Holdings [1]. Hirsch, a respected market analyst (author/editor of the Stock Trader’s Almanac), asserts the 2025 market reset was a corrective phase rather than the end of the bull market, predicting 2026 volatility will resolve to higher levels. His thesis hinges on three drivers: liquidity, earnings strength, and an AI super boom.

Recent market data [0] supports components of this outlook. On 2025-12-30, the technology sector showed positive momentum, consistent with AI growth expectations. Consensus forecasts project 13% Q4 2025 earnings growth and 17.4% full-year 2026 S&P 500 earnings growth, driven primarily by technology [1]. Key tech companies like Microsoft and Apple maintain strong analyst buy ratings, with their AI initiatives cited as critical growth catalysts [0]. AI mentions in corporate earnings calls are also at a 10-year high, indicating widespread adoption and potential revenue growth [1].

1. AI as a Structural Driver
   : The convergence of rising AI mentions in earnings calls, analyst confidence in tech leaders, and projected earnings growth suggests AI is becoming a foundational, long-term driver rather than a short-term trend [0], [1].
2. Correction vs. Bear Market
   : Hirsch’s classification of the 2025 reset as a correction (not a bear market) aligns with recent market stability, where the S&P 500 and NASDAQ remain near 52-week highs despite mild volatility [0].
3. Earnings-Market Alignment
   : The projected 17.4% 2026 earnings growth would support higher market valuations, if realized, reinforcing Hirsch’s bullish thesis [1].

• Risks
  :
  • Uncertainty around liquidity trends (a key driver Hirsch mentioned) due to potential Fed policy changes [1].
  • AI growth expectations may be fully priced into current valuations, risking disappointment if actual growth lags [0].
  • Elevated 2026 volatility could create short-term market swings [1].
• Opportunities
  :
  • Tech and AI-focused companies may benefit from sustained earnings growth and sector momentum [0].
  • Investors with long-term horizons could capitalize on potential market gains if Hirsch’s bullish scenario materializes [1].

Jeff Hirsch’s 2026 bull market outlook is supported by recent tech sector momentum, robust consensus earnings projections, and growing AI adoption. While liquidity trends and volatility pose uncertainties, the confluence of earnings strength and AI-driven growth presents a plausible case for higher market levels over the long term. Investors should monitor Fed policy (for liquidity cues) and AI implementation progress (for earnings validation) to assess the outlook’s viability.