Stocks have rallied in 2026, with the S&P 500 up 13.4% year to date and on pace for a fourth straight double-digit annual gain, even as signs of froth emerge in AI-driven names. Memory-chip leaders—SanDisk, Micron, and SK Hynix—are down for the year, raising questions about whether the AI trade is losing steam, while defensive bellwethers like Coca-Cola and Apple continue to climb. The article argues that if AI unwinds and sparks broader weakness, history favors investors who stay the course: the S&P 500 has compounded at 10.9% annually since 1990 despite sharp drawdowns, including a 37% drop in 2008, followed by a 931% advance since. The prescription is straightforward: avoid panic selling, invest consistently, and use downturns to add at better prices.
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