Investing in the stock market in 2026: Sectors to avoid and those that will be a hit!

Infos | Free publication | 27 Oct 2025

2025: The year of chaos (and lessons to be learned)

Here we are: Donald Trump is back in the White House, and this time he has Elon Musk as his right-hand man. The result? A real stock market rollercoaster! At the beginning of the year, the markets took a hit with the explosion of customs duties. It took three months to recover from the shock... and return to previous levels. Welcome to the world of Trump-style economic policy!

The funny thing is that the mainstream media are selling Trump to us as a new president, when in fact he is repeating his first term, only worse. Threats of 50% tariffs, then ‘negotiations’ to lower them to 30%... and presto, they sell it to us as a win-win situation for everyone. Spoiler alert: getting slapped is always better than getting punched, but it's still a slap.

The outcome in 2025? A bearish year, with twists and turns that would make a Netflix screenwriter green with envy. Altcoin holders lived through a nightmare: -50% in a matter of hours after the announcement of 100% additional tariffs on China (thanks, Friday 10 October 2025). The moral of the story: on the stock market, you have to expect anything... especially the worst political decisions.

2026: Sectors to avoid (unless you like risk)

1️⃣ Artificial intelligence: The bubble that could burst

For the past three years, there has been a race to develop AI. Everyone is coming up with their own model and investing billions... but no one is really making any money. Worse still, AI-optimised chips are coming, which will make AI more accessible... but will it ever pay off? Nothing is less certain.

Problem #1: AI costs a fortune in R&D, and returns on investment are slow, if not non-existent.
Problem #2: Everyone is betting on AI, but who will dominate the market? Google, Microsoft, or an unknown start-up?

Our advice: If you want to play in this sector, bet on infrastructure (data centres, chips) rather than on the AI models themselves.

2️⃣ Electric cars: A market running out of steam

Electric cars were the future... until reality caught up with dreams. China dominates the sector, but with US tariffs and the end of green subsidies, sales in the United States will stagnate in 2026.
In Europe, things aren't any better:

The ban on combustion engine cars in 2035 is still under discussion, but taxes on Chinese cars are driving up the price.
New car prices have skyrocketed (+€10,000 in 6 years!). As a result, consumers are postponing their purchases.
Charging stations? Still not enough of them, and range remains an issue.

Our verdict: Unless there is a technological revolution (solid batteries, ultra-fast charging), the sector will suffer.

2026: Sectors that will (finally) take off

1️⃣ Rare earths: The invisible gold of the 21st century

They are not that rare, but refining them is a headache. France was the leader in the 1990s (60% of global production!), but environmentalists killed the sector... which ended up in China. The result: we are 90% dependent on China for these metals, which are essential for green technologies and defence.
Why is this a good bet?

Demand is exploding (electric cars, wind turbines, smartphones).
Europe and the United States want to reduce their dependence on China.
Recovery projects in France and Sweden could boost local mining stocks.

Our tip: Keep an eye on Lynas Corporation or Iluka Resources, two giants in the sector.

2️⃣ Nuclear power: The energy that will save Europe

Forget wind power (too expensive, too intermittent) and solar power (not powerful enough). Nuclear power is back, and in a big way!

France is restarting its reactors and considering new EPRs.
Germany, after closing its power stations, is realising its mistake and may reverse its decision.
Small Modular Reactors (SMRs) are coming: cheaper, safer and modular.

Why invest?

Price stability (unlike gas or oil).
Strong political support (energy sovereignty = priority no. 1).
Companies such as Orano and EDF could see their share prices skyrocket.

3️⃣ Robotics + AI: The winning combination of the decade

AI alone is good... but AI combined with robotics is the jackpot. Tesla understands this with Optimus, its humanoid robot.
Why will it be a hit?

Robots are already replacing jobs (logistics, agriculture, manufacturing).
Demand for automation is skyrocketing (labour shortages, wage costs).
Advances in AI are making robots smarter and cheaper.

Our advice: Tesla, of course, but also Boston Dynamics (acquired by Hyundai) and iRobot.

💡 Our strategy for 2026

Avoid overvalued sectors (pure AI, electric cars) unless you have an appetite for risk. Focus on rare earths and nuclear power: these are the pillars of the energy transition. Keep an eye on robotics: this is the sector that will revolutionise industry within the next five years.

And above all... don't let political decisions (or Trump's tweets) destroy your portfolio! 🚀

Article by Yippee-Ki-Yay