---
title: "Stock Market Faces 'Three-Headed Monster,' Says Bespoke Investment Group"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/271027895.md"
description: "The S&P 500 has gained 17.7% year-to-date but faces a \"three-headed monster\" of the U.S. dollar, oil, and the 10-year Treasury yield at 52-week lows, which Bespoke Investment Group's Paul Hickey views positively for the stock market. He believes that when these factors decline, it benefits equities. Hickey also dismissed concerns about an AI stock bubble, suggesting that precious metals may be overvalued instead. He remains optimistic for 2026, noting steady inflation as a positive sign for the market."
datetime: "2025-12-29T20:26:24.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/271027895.md)
  - [en](https://longbridge.com/en/news/271027895.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/271027895.md)
---

# Stock Market Faces 'Three-Headed Monster,' Says Bespoke Investment Group

The S&P 500 (SPX) has returned 17.7% year-to-date and faces a "three-headed monster" heading into the new year, according to Bespoke Investment Group co-founder Paul Hickey. Contrary to the ominous name, the three-headed monster actually shows a positive sign for the stock market and refers to the U.S. dollar, oil, and the 10-year Treasury yield trading near their respective 52-week lows.

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"When all those are rising in unison, it's usually a big headwind for the market," said Hickey on _CNBC's_ "Squawk Box." "When they're all falling or near 52-week lows, like they are now, it's like they're rolling out the red carpet for equities."

## **Is there a Bubble in AI Stocks?**

Hickey also shrugged off the possibility of a bubble in AI stocks, adding that precious metals have outperformed the Nasdaq Composite in 2025. "If there is a bubble anywhere, I think it's in some of these precious metal stocks," he said.

While Hickey is "positioned positively" for 2026, he cautioned that "nobody knows what's going to happen." Still, he believes that the stock market is displaying more positives than negatives, such as inflation remaining steady.

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