MW The consequences of AI slop and a hopeful look at what will follow it
By Philip van Doorn
Also, new artificial-intelligence reviews for Medicare approvals and an opportunity in the stock market for early 2026
Much of the AI-generated content on the internet, such as videos, images and even news stories, is now considered "slop," which itself was named the word of the year for 2025 by Merriam-Webster.
You may already be familiar with the term "AI slop," with generative artificial intelligence being used to create an increasing amount of content on the internet. Christine Ji and Britney Nguyen interviewed AI experts who discussed how the public reaction to the new technology compared with opinions during the early years of the internet and what the online media world might look like as it moves beyond AI slop.
More from the MarketWatch technology team:
-- SpaceX, Anthropic and four more companies that could make an IPO splash in 2026
-- The sneaky factor that Apple investors need to watch in the new year
-- What are the hottest tech stocks for 2026? Here's what ChatGPT and Gemini had to say.
-- A humanoid-robot revolution is coming. Don't worry - here's why it will take a while.
How big a factor could AI play in Medicare preapprovals?
Having your health insurer preapprove a medical procedure might be a smooth process handled completely by your healthcare provider. But what if Medicare were to expands its required preapprovals and employ AI as part of the process?
Jessica Hall described a new Medicare pilot program that will just do that, with about 6 million people subject to the new approval process that covers 17 medical procedures starting this month.
A seasonal opportunity to scoop up stocks over the next few weeks
At the end of each year, some investors will decide to sell some of their stocks at a loss to offset other gains booked during the year and ease their capital-gains-tax burdens. That temporary downward pressure on stock prices can set up rebound opportunities.
Michael Brush took a broad look at stocks that declined late in 2025, and then brought in other factors to highlight quality stocks that could show large gains early in 2026.
More from Michael Brush: This winning fund manager spills four secrets about smart ways to buy non-U.S. stocks
A broader perspective for the bull market
Communications led the 11 sectors of the S&P 500 for the second consecutive year in 2025.
After several years of gains for the broad U.S. stock indexes, one doesn't need to look very far back to see that it is reasonable for investors to expect average annual returns of about 10% for the S&P 500 SPX over the long haul.
The S&P 500 returned 17.9% in 2025, following returns of 25% in 2024 and 26.3% in 2023. All returns in this article include reinvested dividends.
Those three years of gains followed an 18.1% decline for the S&P 500 in 2022. So the four-year return through Wednesday was 52.4%, for a compound annual growth rate of 11.1%, according to data provided by LSEG. That compares with a 30-year CAGR of 10.4% for the index.
Here is how compound annual growth rates for the 11 sectors of the S&P 500 compared with the full index's 11.1% CAGR for four years through 2025:
For four years through 2025, the information-technology sector was the best performer among the 11 sectors of the S&P 500. The real-estate sector stood out as the only one with a negative average annual return for the period. All figures include reinvested dividends.
From the Need to Know column: These overlooked indicators say tech stocks may not lead the market in 2026
Read on: Why 2026 could be a banner year for regional-bank stocks
Should you consider investing in these Trump-themed ETFs?
Trump Media & Technology Group Corp. (DJT) announced it was launching five new Truth Social exchange-traded funds on the New York Stock Exchange on Tuesday. The funds have various "Made in America" themes, including the Truth Social American Security & Defense ETF TSSD and the Truth Social American Energy Security ETF TSES.
Isabel Wang interviewed Aniket Ullal, the head of ETF research and analytics at CFRA Research, who said that the success of a thematic ETF is based in part on how distinct it is from older funds that are designed to track similar industry groups. Here's how the Truth Social defense and energy ETFs stack up to well-established competitors, according to Ullal's analysis.
This can happen if you follow the herd ... or a guru
Using a gambling strategy to trade securities might lead to beginner's luck and regret later on, as "Captain Condor" and his followers found out.
Joseph Adinolfi dug into the details of an options-trading strategy promulgated by David Chau, known on Reddit as "Captain Condor," who led a group of about 1,000 investors through a series of risky trades that cost them about $50 million.
More from the markets team:
-- Here are five key charts thatdefined a wild year for global financial markets
-- Why silver's surge relative to oil should be a warning sign for investors
-- Silver, gold and copper trounced stocks. Here's what a key chart level suggests could be ahead for 2026.
A financial grab bag to help ease America's affordability crisis
Several MarketWatchers contributed to this roundup of 10 measures that might help ease the affordability crisis in 2026.
Related: I'm 35 and the only house I can afford is a mobile home. Is it a bad idea to buy one?
A year-end roundup for the Moneyist
Quentin Fottrell is the Moneyist.
Quentin Fottrell - the Moneyist - tackles difficult questions from readers about all sorts of financial topics, including conflict among family members. Here are his most popular columns of 2025.
What to stream in January and how much it will cost
Mike Murphy shared details of the offerings and pricing for eight streaming services. Here's his rundown of what to stream during January, along with the streaming services tiered pricing schedules.
More entertainment coverage:
-- How Netflix delivered a $30 million gift to movie-theater owners with 'Stranger Things' finale
-- China made the world's biggest movie last year, and - in a sea change - it didn't need America's help
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-Philip van Doorn
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January 02, 2026 12:43 ET (17:43 GMT)
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