I’ve just spent a few weeks in the UK, and no matter how you slice it, the place feels like it’s in decline.
I left in 1990, and the downward slide since then has only picked up speed. Under the current left-leaning government led by Keir Starmer – or as I’ve dubbed him, “Stoma” – things are deteriorating even faster. (And yes, if you’re wondering, “stoma” is the medical term for an opening in the body through which shit passes. Make of that what you will.)
Now, Americans may have plenty of complaints about Joe Biden and the damage he’s done globally, but honestly, Starmer is taking things to a new level. At least the U.S. woke up and re-elected Trump. In the UK, there doesn’t seem to be anyone capable – or even willing – to steer the ship back on course.
Sure, Trump isn’t everyone’s cup of tea. But let’s be real: having a businessman and patriot running the country beats having a clueless career politician with zero business sense and no real love for the nation.
From where I’m standing, the UK just isn’t attractive for investors anymore – aside from a few specific sectors. And that’s not just my take. Right now, a millionaire leaves the UK every 45 minutes. That kind of capital flight doesn’t happen in a thriving economy.
There are a few pockets of activity – mainly in renewables and government-leased hotels housing immigrants – but beyond that, investment opportunities are thin. Most of the economy looks stagnant or worse.
While I was there, Trump offered Starmer a trade deal. Apparently, Starmer wasn’t even fully briefed on it before the news broke. Trump also reopened trade talks with China – a smart move that could benefit the U.S. significantly down the line.
Since Trump suspended many tariffs on April 9, we’ve seen a strong “V-shaped” recovery in equity markets. That bounce is nearly played out. So, the big question now is: what comes next?
Trump is trying to clean house – to stabilize the economy and put the U.S. on firmer ground. But the effects of those efforts won’t show up overnight. Most economists, and many CEOs reporting strong profits lately, are saying the same thing: caution is warranted.
Goldman Sachs recently raised its forecast for the S&P 500. On the surface, that’s a good sign. But let’s not forget: big financial institutions are no strangers to talking up the market when they want to offload positions at a profit. If that sounds cynical – it’s because history has proven it again and again.
Just two months ago, people were warning of economic Armageddon. Now, after a solid market rally, that fear has faded. But has anything really changed?
Not much. Consumers – especially in China and Europe – are struggling. U.S. unemployment is climbing. And while AI has been a hot trend, it’s not the kind of industry that lifts all boats. A few companies will win big, but most workers won’t benefit.
Meanwhile, hopes for peace in Ukraine are fading. Early negotiations haven’t gone well. The longer that war drags on, the more expensive it becomes – politically and financially. And don’t forget: Trump isn’t happy with the situation. He could easily step back and let Europe handle the costs – costs many European nations simply can’t afford.
This summer will be telling. Politicians will spin whatever positives they can, but from what I saw in the UK, public sentiment is sour. People are tired of being lied to. They’re frustrated by rising grocery bills and disheartened by the impossibility of homeownership for the next generation. That kind of mood is bad for consumer spending – and worse for corporate growth.
As I’ve said for years, we’re in the middle of a massive geopolitical realignment. That’s not going to be easy for most people.
But readers like you – those who pay attention – can navigate the chaos. If we stay informed, we can spot the opportunities and make smart investment moves. Just remember, while we’re raising a glass after a good day in the markets, profiting from Bitcoin or gold, plenty of our fellow citizens are still struggling to keep the lights on.
And if they stop spending? The future could be a lot darker than the politicians are willing to admit.
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