We just wrapped up one of the most resilient years in recent memory. Global equities hit record highs, risk assets rallied broadly, and the economy proved to be much more resilient than many anticipated. However, as we head into 2026, the picture is becoming more nuanced.

The positive news is that the tailwinds that drove 2025 aren’t disappearing overnight. AI investment continues to influence corporate capital allocation, fiscal support remains steady, and inflation fears have decreased significantly.

However, the “everything rally” narrative is masking some uncomfortable truths that will increasingly demand our attention. The U.S. fiscal deficit is ballooning, Europe is caught in political paralysis, and central banks worldwide are cutting rates into what looks like a debt spiral. Meanwhile, the rise in the price of gold and other real assets suggests that sophisticated investors are hedging against currency debasement.

We wish you a pleasant and insightful read.