My Favorite 4 Sectors For The Rest Of 2026

The areas I like for the second half of this year. Some have underperformed YTD. Others are just starting to outperform.

So far, one of the best calls I’ve made coming into 2026 was psychedelics.

While everyone else was fixation on AI and semiconductors, at the beginning of the year I said it was my favorite sector for the year, arguing that the market was dramatically underestimating both the progress being made on the regulatory front and the amount of upside that could materialize once investor sentiment finally turned.

So far, that thesis has played out about as well as I could have hoped. Some names I pointed out in my 26 Stocks To Watch For 2026, including Compass Pathways (CMPS) and Definium (DFTX) are up about 100%+ and 200%+ respectively so far this year. The AdvisorShares Psychedelics ETF (PSIL) has climbed about 35%.

It’s still a sector I like over the long run because I believe the addressable market is enormous and we’re only scratching the surface of what psychedelic-assisted therapies could eventually become.

But if I had to identify the four sectors I’m most excited about today outside of psychedelics, that have not outperformed the market so far this year, these are the areas where I’d be putting the most attention.