Sandeep Bagla, CEO of TRUST Mutual Fund, identifies earnings recovery as the primary challenge for equity markets in 2026, citing high valuations and elevated expectations. He anticipates continued rallies in gold and silver due to rising inflation risks stemming from global tariffs. Bagla suggests banks and financial services as relatively safe investments, noting low credit costs and reasonable valuations. He also sees potential in discretionary spending stocks, including hospitality, while expecting consumer staples and IT stocks to underperform. Bagla acknowledges AI's transformative potential but notes uncertainty regarding user adaptability.