As the second year of Donald Trump’s second presidential term begins, financial markets are once again under pressure. The instability caused by threats of renewed trade wars and political interference in Greenland’s affairs has created uncertainty in global markets. Stocks, government bonds, and even the value of the U.S. dollar have started to decline. In such conditions, for investors, it is important not only to minimize losses but also to take advantage of volatility. At NEWSCENTRAL, we note that the risks associated with U.S. assets are becoming particularly significant in light of the current political situation. The impact of U.S. decisions on financial markets continues to grow, and we predict that high levels of uncertainty will persist in the coming months.
The recent 2.1% drop in the S&P 500 index, the largest in the last three months, clearly demonstrates how sensitive markets are to political risks. In response, many investors have begun seeking refuge in more stable assets, such as gold and bonds. At NEWSCENTRAL, we believe this is a signal for investors: the current situation requires caution when investing in U.S. assets, as short-term risks tied to U.S. foreign economic policy may offset the anticipated profit growth of U.S. companies. For example, the expected growth of 13.3% in 2025 and 15.5% in 2026 may not fully cover possible losses due to political instability.
Political uncertainty caused by Trump’s threats and his interference in international affairs will continue to pressure U.S. markets. We at NEWSCENTRAL forecast that tariff threats and political instability will curb the pace of economic growth in the U.S. However, despite these risks, the U.S. remains an attractive market for long-term investors. The expected profit growth of companies supports this view, but if the political situation does not stabilize, it could impact financial results and foreign investor interest.
For investors facing current risks, it is especially important to diversify their assets. At NEWSCENTRAL, we emphasize the importance of this approach and recommend protective instruments such as gold and low-risk bonds. Freddy Miller, Senior Analyst at NEWSCENTRAL, notes: “Despite the current political instability, in the face of global risks, it is important to maintain balance in portfolios. Investors tend to consider more stable assets like gold and bonds. However, there are always opportunities for those ready to act in times of uncertainty.” Those who decide to capitalize on opportunities and invest in riskier assets may benefit from current fluctuations, but it is essential to maintain diversification to protect against unexpected changes.
Geopolitical instability and tariff risks will continue to influence markets in 2026. We at NEWS CENTRAL forecast that high levels of volatility will persist, and investors must be prepared for changes. We recommend diversifying assets and using more stable instruments in times of instability. For those looking to invest in U.S. assets, it is important to account for political risks. The intensification of tariff policies and political tensions may hinder the recovery of stock markets. However, the long-term prospects for U.S. companies remain positive if the political situation stabilizes.