Talley Leger on Stocks' Room to Run, "Relaxed" Crude & Small Caps "Leap of Faith"

• Stocks have room to run through 2026, with the earnings engine running hot.
• S&P 500 positive-to-negative guidance gap is encouraging, trending higher since 2021.
• Oil prices are 'relaxed' despite Middle East supply shocks, with exports returning to near pre-crisis highs.
• Investors should take risk heading into Q1 next year, given favorable seasonal windows and midterm election dynamics.
• Small caps have seen a risk-off rotation due to higher discount rates but could benefit from AI spending as technology users.
• The labor market outlook, with lean workforces and productivity gains from AI, supports margin expansion for companies.

Talley Leger from The Wealth Consulting Group believes stocks have room to run through 2026, citing a strong earnings engine and encouraging S&P 500 guidance. He sees oil prices as 'relaxed' despite geopolitical tensions and advises taking risk heading into Q1 next year. Small caps, while facing headwinds from higher discount rates, are positioned to benefit from AI spending.