This week’s may soon be overshadowed by the fact that President Trump will be nominating his new pick for Fed Chairman in the upcoming weeks. Since Senate confirmation is required for the new Fed Chairman, I suspect there will be a big debate about . The truth of the matter is, due to falling rental and home prices, low crude oil prices, plus all the deflation imported from China and weak economies around the world, a serious deflation risk is brewing that would require the Fed to slash key interest rates by at least 1%. Furthermore, a cap on consumer credit cards that President Trump proposed will also likely be debated during the new Fed Chairman Senate hearings.
Between Treasury Secretary Bessent, Commerce Secretary Lutnick, President Trump and the new Fed Chairman, there is going to be a lot of economic cheerleading in the upcoming months. The U.S. economy will hit 6% annual GDP growth in 2026 due to (1) tax cuts, (2) continued strong consumer spending, (3) data center expansion and (4) the housing sector becoming less of a drag on GDP growth as existing home sales improve.
As further evidence of growth, the Commerce Department reported that surged 5.3% in November, which was well above economists’ consensus estimate of a 4% increase. Excluding a 143% surge in commercial aircraft orders, durable goods still rose 0.5% in November, which is positive for GDP growth.
This optimism for the future is addictive, and it will be interesting to see how well the Trump Administration can sell their economic agenda. Right now, with President Trump’s call for a cap on credit card interest, plus lower interest rates, I suspect that he will find few people opposing him, even though JPMorgan CEO Jamie Dimon was very critical of the cap on credit card interest rates.
Interestingly, gold is now over $5,000 per ounce, and during the World Economic Forum had its best performing week since 2008. The primary reason that gold continues to rally is that many governments and central banks around the world have lost credibility. We are teetering on the verge of a deflationary environment where interest rates around the world may collapse, so gold remains an oasis and a great deflation hedge, so we now recommend 17 gold stocks. Some gold stocks I recommend are , , , , , , Idaho Strategic Resources (IDR), , , and .
Although we are in the midst of an incredible small-cap rally and a strong January effect, I noted that my large-cap stocks just posted their strongest relative outperformance compared to the in the past 22 months. In fact, my large-cap stocks are on pace to appreciate 114.9% in 2026. President Trump pledged to make the stock market double and despite a brief setback about Greenland, the stock market is resurging as America exercises its political and military might.