Markets Calm Dispite Barrage of Headlines
Weekly Investment Update | By Brian Schreiner
The stock and bond markets are closed today in observance of Martin Luther King, Jr. Day. Last week, stocks were mixed. Large-caps were down, small-caps were up, bonds were flat and commodities, gold and bitcoin made gains.
The S&P 500 and Nasdaq finished the week lower but the Russell 2000 small-cap index continued its remarkable streak, marking a new record for the index. Small-cap stocks gained 2.4% for the week and are up 7.2% for 2026.
By the way, if you missed my 2026 Investment Outlook: Bubble Watch & the Elusive Pin, you can download it here. I disucss current market conditions, our outlook for the new year and explain exactly how we’re invested and why.
Headlines have been relentless since the start of the new year. Between a ramp-up in geopolitical tensions, fresh threats to (the myth of) Fed independence, and a string of policy proposals aimed at affordability, the market has had lot to digest. Despite the noise, stocks have barely flinched, maintaining a sense of calm.
Just to name a few of the headlines:
The U.S. captures Venezuela’s leader Nicolás Maduro
Escalating protests and violent crackdowns in Iran
White House officials threaten U.S. could takeover of Greenland
DOJ launches a criminal investigation into Fed Chair Powell
White House proposes ban institutional buying of single‑family homes
Governemnt-Sponsored Entities ordered to buy $200 billion of mortgage bonds
White House proposes a one‑year 10% credit‑card rate cap.
On Tuesday, President Trump said, “Inflation is defeated,” after the Bureau of Labor Statistics announced that annualized inflation remained 2.7% in December. More inflation data is coming this Thursday ahead of the Fed’s next policy meeting next week when Personal Consumption Expenditures Price Index (PCE) data will be released.
While the inflation rate has declined from over 9% in 2022, it’s still 35% above the Fed’s target. The dollar’s purchasing power has declined 26% in just the last 5 years—and gold and silver markets are responding. Inflation is a tax and the target should be zero. Working-class families are being slowly crushed by higher prices and the K-shaped economy.
“I would like to make a deal, you know, the easy way. But if we don’t do it the easy way, we’re going to do it the hard way.”
~ President Trump on taking over Greenland, January 16, 2026
Progress made on AI-powered humanoid robots (60 Minutes)
Stablecoin Tether Wants Gold Used for Everyday Payments (Decrypt)
24 Ways Writing Makes You Wealthy (Darius Foroux)
The Epstein Files are Worse Than You Think (Patrick Boyle)
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