Newsroom

In politics and markets, the decisive contest is often the one being played above the visible struggle. Elections, earnings and summit communiqués are the surface game—the real action lies in the metagame, the contest over rules, incentives and narratives that shape outcomes long after today’s skirmishes are forgotten.

Henry Kissinger, American diplomat and political scientist, warned that most statesmen get lost in the “manifestations of events”—daily crises, tactical choices and headlines—and fail to read the deeper “trend of events” that gives those crises meaning. Investors make the same mistake when they trade every move in yields or volatility but never ask which regime those data points are compounding into over a five‑ or ten‑year horizon.

German‑American entrepreneur Peter Thiel’s line that “competition is for losers” captures the business version of the same instinct. The point is not to fight hardest inside the old game, but to see how the game itself is changing and reposition before everyone else.

merica reaches its 250th anniversary not as a fallen hegemon, but as the dominant centre of global hard power, monetary power, and frontier innovation. It still sits astride the world’s resource base through energy, agriculture, and continental depth; it still issues the reserve currency at the core of global trade and finance; and it still leads the race to build artificial intelligence (AI) as the next digital platform. Yet precisely because American power remains so large, the visible breakdown of the post–Second World War rules-based order has become impossible to ignore. To anyone who has read German historian and philosopher Oswald Spengler’s The Decline of the West (1918), this is not a surprise but a pattern: history is not a straight line of progress. Instead, it is the record of civilizations that rise as living cultures harden into systems and eventually exhaust the moral energy that made them great in the first place. America did not choose this time, but it has been born into it.

Mastery of energy, again

Winston Churchill, as first lord of the Admiralty, tied Britain’s fate to Persian oil. United States President Donald Trump’s war in Iran, centred on Operation Epic Fury, could do the same for the West by removing Iran’s nuclear shadow, resetting oil toward US$60, and finally unlocking a modern peace dividend.

“Mastery itself was the prize of the venture.” Winston Churchill’s 1912–13 case for converting the Royal Navy from coal to oil—enshrined in historian Daniel Yergin’s The Prize: The Epic Quest for Oil, Money, and Power captured the brutal clarity of a great power energy strategy: accept dependence to command the seas. That wager framed the last century. In 2026, as Epic Fury grinds through the Gulf and Brent trades above US$100, the question is no longer whether oil confers mastery, but who holds it: a revolutionary theocracy astride the Strait of Hormuz, or a West intent on stripping the terror and nuclear risk now priced into every barrel out of the energy system—finally collecting a long‑deferred peace dividend.

On April 28, 2026, Finance and National Revenue Minister François-Philippe Champagne released the 2026
Spring Economic Update (the Update). This was the first spring economic update after the federal budget was
moved to the fall in 2025. In the absence of a federal budget earlier this year and with the recent shift to a
majority government, Canadians have been awaiting clear direction on the federal government’s policy
focus and anticipated initiatives. Overall, the Update introduces relatively little that had not been previously
announced, while showing an improved fiscal outlook, with the projected deficit declining despite $37.5 billion
in net new spending.

Historians are likely to regard Donald Trump’s presidency as a pivot—as significant as any in U.S. history comparable to the Jacksonian turn, the New Deal, or the Reagan Revolution. Yet Wall Street remains strangely somnolent, pricing in neither the durability nor the depth of what is unfolding. The Trump Doctrine should be seen as equal to—not subordinate to—the Monroe Doctrine, the 1823 U.S. policy that warned European powers against further colonization or interference in the Western Hemisphere. It represents a new organizing framework for U.S. power that blends hard power, economic nationalism, and pro-growth domestic policy.

History does not move in straight lines. Markets ricochet between excess and restraint in violent cycles, a truth American economist Peter Bernstein hammered home and one investors are again being forced to relearn. The foundation for the 2026 investment thesis is that with interest payments on U.S. debt now exceeding annual defense spending, the fiscal constraint has become too binding to ignore, and structural adjustment is no longer optional. We have no choice but to adjust; the system is in a state of flux.

As Canadian Prime Minister Mark Carney has argued, the world is entering a regime shift as consequential as the post-Cold War settlement: 2026 marks the end of pandemic-era stimulus and the start of a new cycle driven by credit markets, technology infrastructure, and redesigned policy frameworks. Under U.S. President Donald Trump, the United States is pivoting toward physical production and capital formation, reviving a traditional comparative advantage that other nations are emulating—much like the 1990s shift from Keynesian to supply-side economics after the Berlin Wall fell when risk assets thrived. In 2026, liquidity increases, deregulation continues, and early in the year, investors should begin increasing exposure to interest-rate-sensitive areas as equity market participation broadens.

Rumours of the U.S. dollar’s decline are as persistent as they are exaggerated. In 2025, one fact stands out: The global U.S. dollar system—“King Dollar”—is not vanishing. The financial, legal, and institutional architecture that makes the dollar the world’s indispensable currency remains at the heart of global finance. It is this systemic centrality, not its day-to-day market price, that ensures “King Dollar” matters most, and it is being strategically reinforced and recalibrated for a multipolar era. After the energetic “weaponization” of the dollar under the Biden administration and U.S. Treasury Secretary Janet Yellen, a prudent diversification of reserves by global central banks was always going to follow. Still, to declare the end of U.S. exceptionalism or the death of King Dollar is not just premature, it is strategically misguided. Yes, the counter trend rally in many currencies is coming to an end. Driven by fundamentals, the King Dollar revival is upon us; investors take note.