Blain’s Morning Porridge, May 27th, 2026 – Record US Stock Markets But Something Ain’t Right? And what rough beast, its hour come round at last, slouches towards Bethlehem to be born?You can’t keep a good market down. New record US levels seem to occur daily. But, why? The underlying picture of the US economy is not weak, but the political structures around it seem to be fraying. What might give and trigger the kind of reversal many expect, or might we get a more fundamental reassessment of what the USA will look like post-Trump?Joy unbounded in markets! Stock markets have hit new record levels – yet again. If you were to snapshot the US economy – what’s not to like? The AI everything boom and the promised productivity gains are driving sentiment higher. Employment numbers are generally solid. Growth is decent. Corporates are doing well with rising outlooks. And the when the stock market is strong – well, that’s a great sign of confidence in the economy and its leadership.The US President would certainly claim so…Why do I have a gut feel a crisis is coming. Its more than just rising inflation fears, or consumers struggling with a 50% hike in gas prices. Talking with American chums, I get the sense they are increasingly worried about stability and sustainability in the debt markets. In bonds there is truth – which we shall come to below.You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!

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