Hey friends, new podcast episode arrived.
I spent the weekend going through one of those dense institutional reports that most people skip.
You know the type. Fifty pages of charts, footnotes, macro projections.
But buried in all that noise was something worth your attention.
The 2026 ISG Outlook makes one argument very clearly: American preeminence isn’t going anywhere.
And here’s the thing.
This isn’t blind optimism. It’s not flag-waving patriotism dressed up as investment advice.
It’s math.
The Case They’re Making
Let’s break it down.
The U.S. has three structural advantages that no other economy can replicate right now:
1. Labor Productivity
American workers produce more output per hour than almost any other developed nation. This isn’t about working harder. It’s about working smarter, with better tools, better systems, better technology.
When AI accelerates this, you get compounding.
2. Natural Resources
Energy independence changed everything. The shale revolution wasn’t just about oil prices. It was about leverage. When Europe froze, America negotiated.
3. Innovation Ecosystem
Here’s what gets overlooked: the U.S. doesn’t just lead in AI. It leads in the commercialization of AI.
Ideas are cheap. Turning ideas into products that scale globally? That’s the hard part.
And that pipeline, from university labs to venture capital to public markets, is still uniquely American.
But What About the Problems?
The report doesn’t ignore the risks. And neither should you.
Federal debt is a real concern. The numbers are ugly. But here’s the contrarian take: debt matters less when you’re the world’s reserve currency and your economy is growing faster than your debt service.
Is it sustainable forever? No.
Is it sustainable for the next decade? Probably.
Tariff policies create friction. They slow things down. But they also force reshoring and diversification that might be strategically smart in a world where supply chains are weapons.
China friction is the wildcard. Nobody knows how this plays out. But the ISG argument is that American institutional checks and balances, messy as they are, provide more stability than any alternative.
Democracy is inefficient. But it’s also self-correcting.
The Hedge Question
Here’s where it gets interesting.
A lot of people think gold is the answer to uncertainty.
Others are betting on bitcoin.
The report’s take? Neither offers the same reliable long-term protection as a diversified equity portfolio.
Why?
Gold is a fear trade. It spikes during panic and flatlines during growth. Over long time horizons, it underperforms.
Bitcoin is still too young, too volatile, too correlated with risk-on sentiment to function as a true hedge.
The boring answer, diversified American equities, keeps outperforming the exciting alternatives.
Nobody wants to hear that. But it’s true.
What Gets Overlooked
Here’s what most people miss when reading reports like this:
The opportunity cost of sitting out.
Every year you wait for the “perfect entry point,” you’re losing compounding.
The ISG projects mid-single-digit returns and sturdy global growth.
That sounds boring. Five percent. Six percent.
But compounded over a decade? That’s wealth.
The people who got rich in American markets didn’t time the bottom. They stayed invested through the noise.
The Real Advantage Nobody Talks About
Think of it like a startup.
Every country has bugs. Political instability. Debt problems. Social tensions.
America has all of these. Loudly. Publicly. On Twitter.
But here’s the difference: America debugs in real time.
The courts push back. The press investigates. Elections happen. Power transfers.
Compare that to systems where problems compound in silence until they explode.
Which one would you bet on for the next 20 years?
My Take
Look, I’m not a financial advisor. This isn’t investment advice.
But here’s how I think about it.
If you’re building something, if you’re running companies, if you’re betting on the future, you need to understand where the wind is blowing.
And right now, despite everything, despite the debt, despite the politics, despite the geopolitical chaos, the wind is still blowing toward America.
Not because America is perfect.
Because America is resilient.
And resilience, over long time horizons, beats everything else.
The institutions that make democracy feel slow are the same institutions that make it stable. That’s the trade-off. And it’s a good one.
Stay invested. Stay patient. Stay building.
Vlad
Post-Credit Scene
A few things worth your time this week:
🎧 HBR IdeaCast: Ray Dalio on Economic Trends, Investing, and Making Decisions Amid Uncertainty (January 20, 2026) – Dalio breaks down his five big forces framework and where the U.S. sits in the current cycle. Essential listening if you want to understand the macro picture.
📘 “How Countries Go Broke: The Big Cycle” by Ray Dalio – The #1 NYT bestseller that Washington insiders are passing around. Dense but rewarding. If you want to understand why debt cycles matter and what the warning signs look like, start here.
🎧 Odd Lots: Goldman’s Hatzius and Snider on the Outlook for 2026 (December 29, 2025) – Joe and Tracy sit down with Goldman’s chief economist and chief US equity strategist to dissect what happened in 2025 and whether it can repeat. Spoiler: AI and tariffs are the two forces shaping everything.
📊 Goldman Sachs: US GDP Growth Is Projected to Outperform Economist Forecasts in 2026 (January 11, 2026) – Goldman projects 2.5% GDP growth versus the consensus 2.1%. Tax cuts, real wage gains, and AI investment are the drivers. Quick read, worth bookmarking.
🌍 Deloitte: Global Economic Outlook 2026 – For the full global picture. The U.S. section is particularly strong on why “resilient” remains the best one-word description of the American economy.
Thanks for listing
Vlad
