GDP Growth, Low Oil & Rate Cuts: Economic Boom?

WASHINGTON, December 22, 2025

Year-End rally Signals Strong Start to 2026

A surge in institutional investment in quality stocks is setting the stage for record earnings and 5% annual growth in the coming year.

Despite concerns about global economic weakness and geopolitical instability, the U.S. economy is poised for a robust 2026, fueled by strong corporate performance. The Federal Reserve’s cautious approach, keeping interest rates at just $1,600 – and weak economies worldwide, driven by demographic decline and shrinking households, are naturally deflationary.

Did you know? The U.S. trade deficit is shrinking due to strong exports, further bolstering economic growth.

Global Risks Cloud the Outlook

This positive outlook isn’t without its potential disruptions. External events, such as the ongoing fighting in Ukraine and Russia, the naval blockade of Venezuela, and the possibility of an implosion within the European Union, represent important threats. The U.S. naval blockade on Venezuela, as reported by The Wall Street Journal, is negatively impacting Cuba, leading to electricity shortages and food scarcity.

EU Faces Internal Strain

Recent farm protests in London, Brussels, and Paris highlight growing discontent with ruling elites. In Britain,protests center on estate taxes and regulations. Within the EU, the “Net Zero” mandates – which prompted farmers to reduce livestock to lower methane emissions – have sparked outrage, with French farmers demonstrating by spraying manure on government buildings in Brussels and Paris. Germany is pushing for a free trade agreement with Latin America to lower food prices, but Italy and other EU nations are hesitant, seeking to protect their farmers from competition with countries that don’t adhere to the EU’s stringent regulations.