“Everything Trump Touches Dies”- The Final Reckoning

There must be something wrong in the U.S when one of the best forms of information flow is through the world of Comedians. The author has always had a fear of leaders who have no sense of humour. With the Press Secretary Karoline Leavitt frequently forced into the refrain, “the President was only joking”, because of the absurdity of her boss’s comments, the fact that the audience doesn’t laugh- is not the only worry. Yet the likes of Kimmel and Colbert have them in stitches with their take on absurdity. Referencing Trump’s statement that the oil in Venezuela belonged to America, Colbert wondered “why did God put our oil under Venezuelan land?”. To Kimmel quipping on Tariff uncertainty “if you’re a small business owner worried about closing shop, President Trump would like you to know he won a golf tournament this weekend”.

It would be nice to draft a more balanced article with something respectful to say about Trump. One upside is that he has forced, for example, Europe, to share more of the cost of NATO. An important institution for the upholding of peace in much of the world. Although that same momentum applies to those providing advice to non-American investors who are being forced to look away from the reliance on the U.S the lead, away from US public market assets to alternatives with more stability. The gold surge being an immediate beneficiary.

So, what’s going on with the current financial reckoning?

1.   The US Dollar. A Currency in Great Decline.

The US Dollar has become the primary casualty of the administration’s “lone wolf” approach. As of January 27, 2026, the USD slumped to a 4-year low. Of course, that is not all bad news because a weak currency should help exports. However, the global trade war Trump has invigorated will be a counterbalance.

Our main point is one of diluted trust in American financial things. Especially where they are exposed to Trump Administration influence. The International Institute for Strategic Studies (IISS) notes that the criminal investigation into the Fed Chair, Jerome Powell, is a significant threat to the USD’s stability, noting that the dollar “remains the backbone of global finance, accounting for 56% of global foreign reserves and involved in 89% of global foreign exchange market trades. Yet amid increased uncertainty about the US Dollar’s long-term stability, driven by domestic vulnerabilities and challenges to the Federal Reserve independence, the search for alternatives is accelerating”.

2.   The Bond Market: the “Sell America” Trade.

The US Bond market (particularly the 10-year version) is often referred to as the “risk-free rate”.  In the midst of an erratic foreign policy, and the Trump performance at Davos, the yield on bonds has risen (meaning their capital values fall). The Greenland impact triggered a sharp sell-off, whilst mitigated by a climb down; the expectation of another drama around the corner persists.

Foreign disinvestment is a talking point in the business news cycles prompting the “Sell America” talk amongst European allies retaliating against IEEPA tariffs (International Emergency Economic Powers Act).

3.   Equities: Growth “in the fog”.

Are the S&P and Dow actually stock markets or a market of stocks? The question is important because Trump often points to the S&P and the value of 401Ks as proof that his policies are prompting growth. That is not exactly true. The markets have been buoyed in recent years by the so-called “Magnificent 7” which is more a reflection on the future of technology and AI (Nvidia being the most prominent example at around 8% of the value of the market). Policy has nothing to do with this outside of “the art of the deals” with the billionaire club like Amazon contributing to Ballrooms and funding the Melania documentary. In short, the Wall Street 7 and Main Street remain tales from two different stories. Trumpian policies are visible in the latter not the former.

Further, government shutdowns mean that businesses and investors end up “driving through the fog” when it comes to trying to determine future value on either specific stocks or the entire market. The fog producing significant market volatility.

Final Reckoning:  Rick Wilson’s excellent political critique “Everything Trump Touches Dies”, has prompted the thought that the soi-disant “stable genius” has produced a huge distrust in things American. After decades of American dominated leadership in the financial world, old thinking needs adjustment and review. With Gold surging this week beyond USD 5,200 per ounce; that seems to be an important resting place whilst investors review how to re-think their core investment policy in the vacuum created by diminishing American leadership.