What does new US Security Strategy mean for Markets and Outlook?

Blain’s Morning Porridge Dec 9th, 2025 – What does new US Security Strategy mean for Markets and Outlook?“For he on honey-dew hath fed, and drunk the milk of Paradise.”The new US National Security Strategy (NSS) revealed last week confirms just how much the world has changed. It was a kick in the teeth for Europe and leaves the door ajar on Taiwan. It’s unlikely to foster stability. It increases the pressure on Europe to swiftly rearm, and unify its defence and deterrence capabilities. For America – it raises fundamental questions about its declining power, strength, might and economic outlook. A number of Porridge Readers asked yesterday why I hadn’t commented on President Trump’s new US National Security Strategy (NSS) yesterday. The Strategy was released last Thursday, but given my close involvement with Spitfire Strategic Capital, the hybrid PE/Defence Fund, I held off till I’d discussed it with the Fund Principals.(For the record: The comments below are entirely my own, and don’t represent the views of the Fund.)The US NSS puts the recent launch of the Spitfire Fund into an even more urgent context. As others have commented, “it could have been authored by Putin.” Europe now has even less time to rebuild its defensive capabilities and prepare itself for decades of crisis. The only way it will survive is through deterrence and being prepared against multiple threats – Russia is the immediately obvious one. Others will be coming.Sadly, I am utterly unconvinced European governments collectively appreciate the urgency and scale of the threat facing them. They are still failing to prioritise the urgency of new defence spending.You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!