Roundhill sees bull market continuing amid rising volatility
SPY•Roundhill Financial expects the bull market to continue in the fourth quarter of 2026 but warns that high growth expectations and rising Treasury yields could increase volatility. It says optical module shipments are projected to double in 2027 versus 2026.
1. Market outlook
Roundhill Financial expects the bull market to continue in the fourth quarter of 2026, while warning that high growth expectations and rising yields increase volatility risks. It identifies rising Treasury yields as the biggest threat to stocks, leaving little room for earnings disappointments. Upward earnings revisions favor U.S. large-cap growth and AI stocks over large-cap value and small- and mid-cap stocks.
2. Sector opportunities
Roundhill says pullbacks in photonics could offer opportunities as growth prospects remain intact, with optical module shipments projected to double in 2027 compared with 2026. It says HALO stocks offer diversification from AI exposure, lower rate sensitivity and more attractive valuations relative to growth than traditional low-volatility stocks.
