And here's some good news (my take)

As the news only seems to get worse, it’s easy to get depressed. However, unlike us humans, artificial intelligence and the markets appear to be anything but depressed. Setting aside the new arms race—from China adding a thousand nukes to its arsenal—and the Republican threat of election interference in this year’s elections, the market gods continue to point north. Even setting aside the massive layoffs, the worst since 2009, productivity is expected to increase due to artificial intelligence. This is the new K-shaped economy, where the wealthy will continue to amass wealth while the majority of Americans face increasing pressure on their finances. But this article is about the good news, so I’ll start there.

With the new America First agenda, we’ve alienated all of our alliances. This has forced Europeans to look inward toward their future, and this may actually be a good thing. Europe, for the first time since World War II and the Cold War, has little choice but to invest in its own defense. Not just an arms buildup—they also want to create a digital Euro for the purpose of competing with the U.S. dollar. This could be incredibly bullish for European stock markets and could usher in a new level of productivity and prosperity.

Japan overwhelmingly reelected Prime Minister Sanae Takaichi this weekend, putting her agenda for economic growth fully into force. She is expected to continue—and possibly double down on—policies to drive exports and stimulate the economy, which could extend Japan’s stock market success.

As American investors, we are privileged to be able to invest globally where we see opportunity. There are mechanisms available to preserve wealth during an American domestic crisis, even one of its own making. Investors now have the opportunity to expand their investments overseas, into commodities, and into other investments that correlate less with the U.S. economic cycle.

It’s also important to remember that the S&P 500 is not representative of overall American economic health or prosperity. In fact, roughly half of the income of these companies is derived overseas, making the index more a measure of global economic health—which is why it should continue to remain part of a diversified portfolio.

I understand there is every reason to feel discouraged about the chaotic trajectory we find ourselves on. This change feels sudden, but one could argue that the geopolitical changes were already in process. Europe must invest in its own prosperity. It is overwhelmingly dependent on U.S. security, internet infrastructure, energy, medical technology, and many other resources. There is a significant opportunity for Europe to develop and secure its own supply chains to protect its future.

The largest population growth in the coming decades will occur in Africa, which will follow its own trajectory and present major opportunities—particularly in supplying critical minerals to the rest of the world. China is likely to emerge as the new global leader as the U.S. divests and pulls back its influence from emerging markets. A strong Europe can continue to serve as a healthy counterbalance to Chinese aggression—but only if Europe achieves true self-sufficiency.

At Eureka Wealth Management, I keep my clients informed about changes in the markets and their investments. I also provide retirement planning, tax strategy, and insurance guidance. Call for a free initial consultation at (760) 537-0791 or book a meeting at eurekawealthmanagement.com.

Sources:

FT 1/6/26: "Africa’s growth could outpace Asia’s this year" link