Latest Finance-Economy News
Markets Enter 2026 with High Valuations and Crash Warnings
S&P 500 and ASX 200 hit highs in 2025 despite geopolitical tensions, sticky inflation, and rising rate expectations. Valuation metrics like Buffett Indicator signal overvaluation, urging investors to avoid panic selling.
History shows expensive markets can stay elevated longer than expected.
Positive Economic Gains in Developing Countries from 2025
Emerging markets saw middle-class expansion, with over half the global population now middle class. International trade surged 7% to over $35 trillion, led by East Asia and Africa.
Renewables boomed, with India adding record solar and Africa launching energy compacts.
Top Economic Themes for 2026: Tariffs, AI, and Fed Changes
2026 features tariff drama, tax cuts from the One Big, Beautiful Bill Act boosting Q1 GDP by 2.3 points. AI investments drive growth but raise job loss fears; productivity impacts key to watch.
New Federal Reserve leadership adds policy uncertainty.
US Economy Outperforms Peers Entering 2026
US GDP growth forecast at 2% for 2025, beating UK's 1.5% and Eurozone's 1%, with inflation at 2.7%. AI fuels corporate earnings and market optimism, though affordability issues persist.
US confirms 13,000 tonne beef quota for UK exporters effective January 1.
2026 Outlook: Steady Growth Amid Neutral Monetary Policy
Global growth persists at 1.9% US, 1.6% Eurozone; fewer rate cuts as policy turns neutral. Dollar fell 11% in 2025; AI and GENIUS Act boost investment.
Protectionism risks from China exports could spark retaliation and inflation.
Debt and Deficits Pose Major Risks for 2026
Fiscal indiscipline worldwide threatens higher rates, taxes, and inflation amid rising debt. Global expansion continues modestly, supported by innovation offsetting demographics.
Tariff wars accelerate self-reliance, raising costs for exporters and importers.
AI and Deglobalization Reshape 2026 Economy
Advances in AI, robotics, and deglobalization help developed nations counter slow growth and inflation. These trends mitigate risks in a shifting global landscape.
Avoid Panic Selling if 2026 Market Crashes
Long-term investors should shun panic selling during downturns, as it erodes wealth. Markets rose despite high valuations in past periods like late 1990s.
Volatility isn't risk; permanent loss is, per Warren Buffett.
Tax Cuts to Boost Early 2026 Growth
One Big, Beautiful Bill Act's impacts hit in Q1 2026, aiding GDP via fiscal measures. Larger refunds from tip deductions, Social Security; corporate incentives for manufacturing.
Immigration enforcement spending also rises.
Renewables Surge in EMDEs Signals 2026 Progress
Pakistan nears 20% solar power in 2026 from 1% in 2023; green debt tops $3 trillion. High Seas treaty ratified, effective January 2026 for biodiversity.
IFC launches collateralized loan obligations for EMDE assets.
Global Trade Grows Despite Protectionism
2025 trade hit $35 trillion, up 7%, with Africa tourist arrivals up 10%. Private renewable investments shift from policy-dependent models.
UK mood shifts toward lower EU trade barriers.