President Donald Trump is probably the most divisive political figure of our time. You either love him or hate him. To him, you’re either a friend or foe. In his first weeks of office, his executive orders have already confused and confounded. Just through the cessation of foreign aid, thousands of aid workers have been forced to stop working as global charities lost funding.
His speech at the World Economic Forum gave a taste of an America turning inward - or, as he calls it, “the golden age of America”. Under Trump, America will do what is good for America. This sharply contrasts with how America has historically seen itself as a global leader in tackling global threats like climate change, inequality, and technological disruption through global cooperation. (Of course, this has not always been reflected in its action during global conflicts!)
President Trump’s threat to impose tariffs on imports from their biggest global trading partners and other ‘enemy’ countries is likely to trigger retaliation and could shift global alliances. We’ve already seen this with Columbia since his inauguration. And these strong-man tactics may not be limited to just tariffs – Trump wants an increase in defence spending by all NATO countries, and, given his threats about Greenland, Denmark has recently hiked its defence spending.
Overall, we can expect more noise simply because of how the US government will conduct itself – unpredictably and forcefully. This will likely give other like-minded leaders license to act similarly.
You may be asking: How do we navigate the noise and likely real changes? More than ever, we must guard our mental attention. The more polarised the world becomes, the more likely we will be drawn into a vortex of vicious digital media. This can have a real impact on our attention and mental health, with concrete effects on our lives.
We should be more circumspect than ever about what information we consume and be even more diligent in verifying its accuracy. The most powerful digital media companies now operate in a ‘free speech’ environment. There is no obligation to publish the truth or to operate ethically.
We may be tempted to gamble on the policies of the incumbent parties. However, change rarely unfolds in financial markets the way we anticipate. This is not the time to take strong views – it’s a time to be circumspect and to hedge one’s bets with even more diversification than ever. It’s also a time for financial conservatism. At inflection points, those with cash on hand often benefit from opportunities and are best positioned to survive the unexpected.
Finally, I suggest that this is a time to focus on your own life. Find what’s good in real life. Not the news. Keep planning, dreaming, and living your best life.
Ps. Join me for a creative morning workshop where we'll explore the beautiful possibilities that 2025 holds and craft your very own vision board to guide you through the year! I am offering a workshop in Johannesburg on 5th February. E-mail me for an invite. Seats are limited.
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Kind regards,
Sunél