That’s an Outrage!

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

I’m someone whose independent thought has been described multiple times as “outrageous,” and I actually consider that depiction a point of pride. As Aristotle said, “There is no great genius without some touch of madness,” and I concur. So, you might not be surprised that one of my favorite annual predictions issues comes from Denmark-based Saxo Bank, which they call the “Outrageous Predictions 2026” report.

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Rather than your average market forecast for the year ahead, Saxo calls their Outrageous Predictions “our annual exercise in out-of-box brainstorming on the kinds of crazy things that might just come true.” I actually love this concept, because it’s the kind of thought experiment I often engage in when contemplating potential future events.

So, what are some of these Outrageous Predictions? Well, you can read the full report here, but I’ve already taken on that effort for you, and today, I will give you the recap of each, and tell you what I think of them.

Quantum Leap: Q-Day and Financial Chaos

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The arrival of so-called “Q-Day,” the point when quantum computing can break existing digital encryption security codes, will prompt a meltdown in the financial system that will cause assets such as Bitcoin to collapse to near zero, freeze bank accounts, prompt bank runs and cause hard assets such as gold to soar.

Now, this would indeed be very dystopian, and while cybersecurity and the rise of uber-powerful quantum computers is an issue, I don’t think this prediction will play out — at least, I am praying it won’t!

Taylor Swift-Kelce Wedding Fuels Economic Growth

Saxo knows it’s not wise to ignore pop culture in its report, and thus they predict that the wedding of Taylor Swift and Travis Kelce in 2026 will inspire a global trend toward family formation and offline living. ​Going even further, this prediction includes Swift announcing her pregnancy shortly after the wedding, prompting a lifestyle shift among fans and a surge in marriage and birth rates among millennials and Gen Z.

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I hate to say this, but I think the whole Swift/Kelce thing is played out. It had its time last year, and now that Swift’s big world tour is over and Kelce will be watching the NFL playoffs from his sofa this year, I don’t see the impact being that powerful. Of course, I’m a fan of love and marriage and family, so if this does happen, I won’t be mad at it.

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U.S. Mid-Term Elections Proceed Without Major Issues

Saxo predicts the 2026 U.S. mid-term elections will occur smoothly despite concerns over gerrymandering and political outrage. They also predict Democrats gain control of the House with a net swing of about 10 seats, while Republicans retain a reduced Senate majority. ​

For the most part, this is not an outrageous prediction, but rather a basic one. We should have elections run smoothly in this country, and for the most part they have been free and fair, despite the repeated and non-evidence-based claims by some currently in office. And if history is any harbinger of things to come, the party in power usually loses seats in Congress in the mid-terms, and hence a likely Democratic takeover in the House.

Obesity Drugs Revolutionize Weight Management

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In 2026, obesity drugs become widely available for both humans and even for pets, transforming health and wellness markets. The prediction also includes that global BMI averages in OECD nations decrease by one full point as the drugs become lifestyle tools. Most interestingly, the new GLP-1 treatments for pets, branded as “Ozem-Pup” and “WeeKitty” gain popularity, sparking debates on animal rights. ​

Hey, I love the playfulness of this prediction, and while I suspect greater adoption of obesity drugs in the year ahead for people, I am skeptical of the claim that corpulent cats and canines will also start receiving the “fat drug.”

SpaceX IPO Sparks Extraterrestrial Market Growth

Elon Musk’s SpaceX will IPO in 2026, leading to unprecedented growth in the space industry and the emergence of new extraterrestrial markets. The company will also aim to establish lunar and Martian bases, with plans for a manned mission to Mars in 2029. ​Then comes the interesting aspect of this prediction, and that is a bidding frenzy for lunar plots and mineral rights ensues, leading to a speculative market crash. ​

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I think it’s a near certainty that SpaceX will IPO in 2026, and I would not be the least bit surprised if early speculators begin to jockey for lunar position in the pursuit of future profits. Hey, human nature is always predictable, and there’s nothing outrageous about that.

AI Model Appointed as CEO of Fortune 500 Company

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Saxo’s controversial prediction here is that a Fortune 500 company appoints an AI model as CEO, marking a paradigm shift in corporate governance and decision-making. The AI model operates under strict guidelines, focusing on profit, customer satisfaction and employee well-being. The prediction goes on to say that the AI CEO’s performance will lead to improved operational efficiency and profitability, and that it will become a trend that gains major traction.

I doubt this will happen, although I do think there’s a whole lot of robotic thinking among CEOs these days. I mean, just listen to many of them being interviewed on CNBC, and you’ll think they were robots already. What I do suspect will happen is that CEOs will increasingly apply AI in the service of their decision-making, and I think this will be a tool used for good in the years to come.

Golden Yuan Challenges Dollar Dominance

This is perhaps the scariest of predictions by Saxo, and it is that China will introduce a gold-backed yuan in 2026 that threatens the dominance of the U.S. dollar in global finance. The nation will announce gold holdings that surpass U.S. reserves, leading to the launch of a partially gold-backed offshore yuan (CNH). The golden yuan offers a tangible reserve currency, reducing reliance on U.S. financial systems. ​Frighteningly, countries then begin trading in golden yuan, leading to a decline in U.S. Treasury holdings and a weaker dollar. ​

Talk about the “end of America!” This prediction, if ever realized, would represent a major threat to U.S. financial dominance around the globe. This would indeed be a very negative scenario for the United States, so here is one prediction I hope stays in the realm of the outrageous.

Dumb AI Triggers Major Cleanup Efforts

Finally, the rise of flawed AI systems in 2026 will lead to a costly cleanup and a reevaluation of automation practices. Widespread adoption of so-called “agentic AI” results in significant operational failures and crises across industries. The fix here will create a new profession of “AI janitors” that emerge to address and rectify these issues, leading to increased demand for cybersecurity and consulting services. ​

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This is a prediction I fully expect to come true, although it might not be in 2026. The fact is that agentic AI and its unpredictable byproducts will require “fixers,” or “AI janitors,” because like any new technology, it’s hard to know where the problems will come from until the problems actually appear.

This prediction just makes me confident in knowing that stocks in the cybersecurity and software sectors will continue to be ripe fruit for investors in this outrageously unpredictable and eminently beautiful world we call home.

Have a safe and happy New Year’s Eve, and whatever your plans are tonight, I recommend ringing in 2026 with a toast to the world… and everything in it!

****************************************************************

Cheers to Mistakes in the New Year

“I hope that in this year to come, you make mistakes. Because if you are making mistakes, then you are making new things, trying new things, learning, living, pushing yourself, changing yourself, changing your world.”

–Neil Gaiman

The great fantasy novelist, whose brilliant classic “American Gods” is a must-read, puts the new year into proper perspective here. You see, in 2026, I plan on making a lot of mistakes. Well, to be more accurate, I plan on trying new things, learning, living and pushing myself to affect change in myself and the world. I don’t know about you, but I can’t think of a better new year’s mission than that.

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.

In the name of the best within us,

Jim Woods

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