Articles

In 2024, we pointed to a shift in the zeitgeist from caring capitalism to unfettered animal

spirits. Rising polarisation and a fraying commitment to multilateral collaboration were

driving increasingly fractious political discourse. Just twelve months later, we are forced to

recalibrate again.

Led by President Trump, the world’s dominant superpower is set on a course few free-market

economists would recognise. A new politics of fear is taking hold, more closely associated with

autocratic systems of governance. Self-enrichment of the governing class, guided by a mantra

of ‘might is right’ and, at times, personal vendettas, leaves corporations, asset managers and

citizens exposed. As Bill Gates observed in Davos in January 2026: “People are afraid to speak out

about being afraid”.

This new reality is upending not only the post-war world order but also policy predictability,

with uncertain consequences for long-term economic growth. It is one thing to unleash animal

spirits in a system underpinned by secure property rights, an independent judiciary, predictable

policymaking and accountable democratic institutions. It is quite another to operate in an erratic

environment of perceived preferential treatment, where market rules and behaviours are less

clearly anchored in a transparent, rules-based framework.