The return of brilliance to traditional assets.. Saxo Bank’s shocking expectations for the year 2026

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The return of brilliance to traditional assets.. Saxo Bank’s shocking expectations for the year 2026

Predict analysis for "Saxo Bank" The US midterm elections scheduled for November 2026 will bring shocking changes to the US economic landscape and the broader global financial system.

Classic scenario

John Hardy, head of macroeconomic strategies at "Saxo Bank"that ultimately, the 2026 elections will witness the classic scenario of a reverse shift against the ruling party; Democrats seize control of the House of Representatives by a narrow margin, achieving a net gain of about ten seats.
On the other hand, Republicans retain control in the Senate, but with a shrinking majority, which gives two swing-leaning senators broad influence to act as "Kings makers" In passing policies and legislation.

Independent Revolution

More important than the numerical results, is that the behavior of politicians from both camps is igniting a massive wave of anger. This anger is led by a massive campaign led by independent voters – who represent the largest voting bloc in America – that succeeds in forcing the establishment of… "A new committee to demarcate electoral districts impartially" Across the United States, with a binding mandate to complete new maps before the 2028 presidential and legislative elections.

In parallel with this movement, a fundamental shift is emerging: a maturing public awareness that the dysfunctional and desperate partisanship that dominated the scene was artificially driven by social media algorithms, specifically designed to inflame anger and entrench a paradigm "Choose your own reality"

The collapse of populism

With the flood of rubbish content generated by artificial intelligence and technologies "Deep fakes"Public trust in what these platforms offer is eroding. This is leading to a migration of the masses toward a smaller, more reliable group of balanced, rational voices, at a time when Americans look back with embarrassment, realizing the extent of the manipulation they were subjected to by exploiting their behavioral tendencies and the algorithms of companies like "dead", "Tik Tok"and"Google"

A return to traditional origins

Hardy believes that this changing political landscape will have a direct repercussion in Financial markets, explaining that "Relative institutional stability and a return to a more rational political dialogue, however faltering, will push investors towards safer traditional assets".

This shift is expected to lead to a rise in US Treasury bond prices, corresponding to a decline in their yields, as a sign of partially restored confidence in long-term institutional stability.

Accordingly, the midterm elections establish a new path tending towards greater unity and political civility, as a new consensus crystallizes on the necessity of preserving the integrity of American institutions and civil dialogue. While Trump continues in his usual style, the United States has passed that era, and the unity of the Republican Party begins to crack, and the country actually moves to the post- "The height of populism"

Winners and Losers

Hardy explains the other side of the impact of these societal and political transformations on the investment portfolio, saying: "As the glow of populism fades and trust in traditional social platforms erodes, we will see a significant decline in an asset class that thrived in an atmosphere of uncertainty and anger."

Hardy expects these declines to include shares of social media companies, cryptocurrencies, and even traditional havens such as Goldand silver, which lose part of their turbulent luster as the emotional tide that led to their prosperity begins to recede.