 Dear Reader,
The Treasury Department just issued a stunning warning: U.S. banks could lose up to $6.6 trillion of customer deposits as Americans rush into a new form of money… That’s just been authorized under President Trump’s highly controversial new law, S.1582. But be warned: S.1582 has been brought in so fast, the window to act is closing fast. Addison Wiggin Founder, Grey Swan Investment Fraternity
Further Reading from MarketBeat 2026 Sector Playbook: 3 Sectors Trading Below Fair ValueBy Chris Markoch. Publication Date: 1/1/2026. 
Summary- Sector rotation into financials, industrials, and utilities could continue in early 2026 if crowded growth trades cool off.
- Sector ETFs can work, but stock selection may offer better value where forward valuations sit below sector norms.
- Rate expectations, capex trends, and data center power demand are three practical catalysts to watch across these sectors.
As we kick off 2026, the sector rotation that began in December 2025 will likely continue. Some investors believe that many of the best-performing stocks of 2025, notably artificial intelligence (AI) names, are simply overvalued. This view goes beyond concerns about an AI bubble and reflects broader valuation worries. Many growth-oriented technology stocks appear expensive and may need a correction before their valuations become attractive again. What I just learned about what's unfolding in the White House is truly stunning…
And you need to see it for yourself.
Once you see what's unfolding behind the scenes, you'll understand why I rushed this interview and opportunity to you today. Click here to watch this video As investors rotate out of tech, they'll look for sectors trading below fair value. Three key areas to consider are financials, industrials and utilities. It has been a stock-picker's market, so some names in these sectors have already performed well and many investors may continue to ride the winners into 2026. However, other stocks still trade at attractive valuations relative to their sector and the broader market. By focusing on individual names, investors may be able to outperform the leading sector ETFs. Financials: Lower Rates Could Unlock Undervalued Bank Stocks in 2026Financial stocks are expected to fare well in 2026 regardless of short-term rate moves. With the odds leaning toward at least one rate cut in the first half of the year, the sector looks attractive: lower rates generally stimulate the economy and are supportive of bank earnings. One option is the Financial Select Sector SPDR Fund (NYSEARCA: XLF). The fund rose roughly 13% in 2025, lagging the S&P 500, and provides exposure to established names like JPMorgan Chase & Co. (NYSE: JPM) and Berkshire Hathaway (NYSE: BRK.B). Those large caps trade at or slightly above the sector's forward price-to-earnings (P/E) ratio of about 16.5. An alternative is to target undervalued bank stocks such as Bank of America (NYSE: BAC), Capital One Financial Corp. (NYSE: COF), and PNC Financial Group Inc. (NYSE: PNC), which may offer more upside if conditions improve. Industrials: Capex Revival and Infrastructure Demand Point to UpsideIndustrials were among the hottest sectors in the first half of 2025 but cooled in the back half of the year, a trend reflected in the chart for the Industrial Select Sector SPDR Fund (NYSEARCA: XLI). Industrials are positioned for another strong year in 2026 if lower rates spur capital expenditures and boost infrastructure demand. XLI gained about 18% in 2025, roughly matching the S&P 500. Many of its top holdings trade above the sector P/E average of roughly 24x, which itself sits above the S&P average. That said, value remains in names such as Boeing Co. (NYSE: BA), Union Pacific Corp. (NYSE: UNP), and Honeywell Intl. (NASDAQ: HON), each trading at a forward P/E below the sector average. Utilities: A Quiet Value Play Powered by Data Center Energy NeedsThe utilities sector is another way to find value in 2026, for example via the Utilities Select Sector SPDR Fund (NYSEARCA: XLU). The ETF finished 2025 up around 13%, underperforming the broader market largely because of a roughly 5.5% pullback in the final month of the year. Utilities are expected to benefit from rising demand from data centers as well as the need to modernize aging electric infrastructure. The sector's average P/E is about 18x. Some names trade below that level, including Exelon Corp. (NASDAQ: EXC), Pacific Gas & Electric (NYSE: PCG), and Algonquin Power & Utilities Corp. (NYSE: AQN).
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