5 Long-Term Themes You Need to Understand For 2026 | The Weekly Wrap

Steve Eisman's weekly wrap for the first week of 2026 focuses on long-term structural themes impacting the stock market, particularly the dominance of tech and its effect on consumer-driven sectors. The increasing influence of tech, driven by AI investment, puts pressure on consumers and related sectors within the S&P 500. This tech dominance creates problems for active portfolio managers due to risk restrictions and sector weightings, further amplified by the prevalence of index investing, which accounts for 60% of equity market flows. Eisman also addresses a listener question about PayPal's underperformance despite earnings beats, attributing it to increased competition and a perceived erosion of its franchise value, leading him to view the stock as a potential value trap.