Markets tend to regard Populist Politics as a threat. They risk destabilisation, dent stability and raise questions about competency. Although Nigel Farage won the Clacton by-election, his brand is badly damaged and that puts Reform in trouble. The question is whether the traditional parties can regain electoral prominence and put in place the necessary policies to repair Broken Britain’s infrastructure and finances – and attract investment.

The AI infrastructure build out already dominates credit market funding. Now Nvidia will effectively securitise its chips to its market though a panel of private capital markets firms that lend it credibility. The worry is complex and appealing deal structures will simply hide the risks inherent in AI – and increase the likelihood of a correlated crash when something inevitably breaks.

2026 looks likely to be the warmest year ever. Oceans are charged with energy to drive ever larger storm systems. Wildfires and droughts are ravaging the land. What if this is only the beginning? What if the climate is about to stage a chaotic breakout? Just how resilient will humanity be to a war with an implacable enemy that will give no quarter? What might it mean for the economy?

The real strength of the US economy is not its military or the dollar’s exorbitant privilege, but the depth of its capital markets - which have financed the most successful economy in history. The risk is not how large the US deficit is, but how sustainable are America’s capital markets to mounting fiscal pressures, market shifts and geopolitical forces?

The tide of American Politics has turned dramatically extreme in recent days. The narrative is no longer about why Trump is haemorrhaging electoral support but has shifted to whether the Democrats can unite to win the Midterms in November and present a credible challenge to Trump’s MAGA successor in the 2028 presidential election. The coming gladiatorial contest between Right and Left populists will be watched closely by concerned global investors.

As we fearfully watch the markets as the liabilities and exaggerations of AI threaten to unravel, or ponder what games arch-manipulator Scotty Bessant is playing with the Yen… there are times to sit back and wonder what life is really all about? The answer is in doing what makes you happy. In my case its sailing… Instead of trying to explain markets, let me run through how the yacht I was sailing just won Vintage Class at the 200th Cowes Week Sailing Regatta.