Smart Investor: AI Crash Protection, Is the Economy Getting Better, and Where To Invest for ‘26

After a long wait, the government-shutdown-induced halt in major official data came to an end this past week with the release of the November jobs and Consumer Price Index reports. The jobs data was weak, while inflation came in much softer than expected. But with the distortions caused by the shutdown, the data was largely shrugged off, and stocks drifted throughout the week.

So where does this leave the economy? While we will have to wait until January for a cleaner picture, there are some trends emerging for the jobs market and inflation. Sarah Hansen takes a look.

Perhaps the biggest debate raging on Wall Street is around whether the artificial intelligence trade is a bubble. Some stocks seem to be in the crosshairs more than others, Oracle chief among them. If you are worried about an AI bubble, what should you do? Here’s a look at the risks and five ways you can protect your portfolio.

Bubble or not, Morningstar portfolio managers think AI-driven tech stocks are a lot less attractively priced than they were earlier this year. At the same time, other opportunities are beckoning. Here’s a look at why our strategists have been trimming tech, and where that money has been put to work.

Lastly, Morningstar Indexes strategist Dan Lefkovitz talks with Ivanna Hampton about the volatility seen over the course of 2025 and the lessons investors can take with them for 2026. Check out the video.

As always, be sure to visit our Markets page for our latest coverage and live stock market updates, along with our full weekly calendar of key upcoming data and events.