These Are the Stocks to Buy In 2026 (with JC Parets) - The Compound and Friends Recap

Podcast: The Compound and Friends

Published: 2026-01-16

Duration: 1 hr 24 min

Guests: JC Parets

Summary

JC Parets joins Michael Batnick and Josh Brown to discuss future stock opportunities, insights on market trends, and the importance of understanding financial psychology. They explore sectors poised for growth and the potential pitfalls of prediction markets.

What Happened

JC Parets highlights the enduring nature of commodity bull markets, which historically last 10-20 years. He warns against betting on a short-lived cycle and emphasizes the importance of recognizing long-term trends. Michael Batnick and Josh Brown discuss the relevance of focusing on high-value activities, drawing parallels between reading and researching with the avoidance of non-essential skills like carpentry.

Consumer discretionary stocks are hitting new all-time highs, despite underperformance in recent times. Travel and airline stocks like Delta and United Air are surging, while Visa and MasterCard are seen as better indicators of consumer spending trends. JC Parets notes the irony of consumer sentiment being at its lowest while consumer stocks reach new peaks.

Emerging markets show significant gains, with indices excluding China up 35% and those including China up 34%. JC Parets observes that the global stock market is reaching all-time highs when excluding the US, which was among the worst performers in 2025, even with strong NASDAQ and S&P 500 results. He suggests that small caps, particularly in the Russell 2000, may outperform larger caps despite the presence of many barely profitable biotech companies.

The energy sector, particularly oil and gas, is identified as an underrepresented yet promising area for 2026. JC Parets mentions that energy stocks have potential despite their low representation in major indices like the NASDAQ and S&P 500. He also discusses the importance of monitoring the dollar's performance, as a breakout above 100 could negatively impact international stocks and precious metals.

JC Parets introduces his concept of 'fade groups', advising to take opposite positions from sell-side analysts, asset managers, journalists, and economists. He stresses the importance of understanding human psychological flaws to avoid common financial mistakes. He cites historical examples like Isaac Newton's losses in the South Sea Bubble to illustrate that intelligence does not safeguard against financial errors.

The episode concludes with a look at prediction markets, which JC Parets sees as potentially larger than securities markets. However, there is skepticism about their viability, with concerns about the binary nature leading to quick losses and fading interest. JC Parets' research and insights can be explored further at trendlabs.com.

Key Insights