Joe Nicols’ 2026 Predictions

Posted on January 13, 2026 in Articles and Publications

Local

Austin Economy

I feel the Austin economy will be a bit flat until the fall of 2026. Highlights over the next 9 months will be tech advancement into AI, and the healthcare sector with innovations in Medical software and biomedical engineering. But, from September through the end of the year, there will be more positivity as the Austin economy rebounds, which continues into early 2027. As of now, I see the Austin economy generally improving over the next 3 ½ years.

Austin Real Estate

I see the Austin real estate market experiencing a gradual uptick over the next 9-10 months, possibly due to the influence of lower interest rates which are beginning to kick in. For some reason, I’m seeing a setback in Nov/Dec, 2026 and January 2027, possibly due to some new laws or legal restrictions on the local or state level, or economic events on the national level. The next 10 months looks more positive for real estate sales or purchases.

National

U.S. Economy

Even though at this time the U.S. economy is the world economic leader, other countries are gaining ground in a number of competitive areas, and the U.S. no longer has a cushion with which to overcome economic mistakes and easily stay on top. However, I do see the U.S. dollar continuing to maintain its position as the accepted currency for world trading for many years. In 2026, the U.S. economy will do reasonably well, partly due to other countries comparatively struggling, and will begin to improve more into 2027. Of course, this is a macro-economic situation, and does not necessarily mean that individual Americans won’t feel the budget pinch.

U.S. Interest Rates

Although I see a lot of politics or even deception around the interest rate question, there appears to be stability over the next six months, so the rate may be maintained, or there may be more rate reductions. However, from mid-summer through the early part of 2027 there will be turmoil, anger and struggle concerning the rates.

U.S. Stock Markets

I feel there will be relative stability in the markets over the next 6-8 months, but then I see a temporary downturn in August/September, in anticipation of potential changes due to the upcoming midterm elections. The markets should rebound in November/December, and stabilize in early 2027.

AI in the U.S.

AI will spur venture capital and other investments in 2026 which will support the economy of the U.S, especially in the medical and biotech industries, in manufacturing, and in personal expression and creativity products. However, job retraining programs will present challenges at first. The AI “blush will be off the rose” in 2027, as technical bugs surface, infrastructure repair and expansion costs become apparent, and job losses rise. I believe the U.S. is poised to do well in AI development, but other countries are moving heavily into the space and will be competitive. What I lose sleep over is the present and future development and use of autonomous AI weapon systems. What could possibly go wrong?

Immigration and ICE

The Departments of Justice and Homeland Security will be trying to put a positive spin on ICE arrests and detentions, but they both are experiencing headwinds from the public and opposition politicians who level charges of no accountability and operating somewhat like a secret police. Continued public anger will bring unwanted visibility, and over the next 6 months the administration will try to run interference to misdirect away from the negative exposure. In 7 to 8 months, the ICE raids will diminish as legal decisions are brought to bear and the administration fears a loss of support reflected by the results of the midterm elections.

The U.S. and Venezuela

While there may be bigger questions of violations of international law by attacking and killing seamen in both Venezuela and international waters without clear provocations or declaration of war, and the land attacks on Venezuela and the capture of the Venezuelan President and his wife, but the U.S. seems to have little risk militarily or financially over the next 6 months. I feel there are a lot of politics at work, because of Venezuela’s large oil reserves, their connection to Cuba, and the fact that an outside enemy or war is a great opportunity to distract people from domestic troubles. I see that the U.S. could continue as much as a 2 two-year involvement and have the upper hand, but after that I predict serious blowback from Venezuela, Latin America, and many other countries. I feel the U.S. is going to regret this involvement.

The Epstein Files

With respect to how the Department of Justice is dealing with the Epstein file case, I get deception all over the place. I don’t feel that any substantial disclosure will happen in the next four months. The administration will do everything they can to stall and to direct attention to other mentioned celebrities such as Bill Clinton or Prince Andrew. I do see more disclosure of names and events with some unredacted versions in five months, but the administration will try to put the fire out through denial and letting it blow over, hoping that the fickle public will move on before the midterm elections. The case will negatively affect Trump’s image and affect the midterms, but I do not see Pam Bondi being impeached and removed from office.

Midterm Elections

The Democrats are feeling excited now and the Republicans are worried. However, this is only the first half of the ball game. The Epstein affair has done damage to the President and the Republican party and will continue to be a problem. But, in the next 5-6 months the G.O.P will have gathered donors and strategies and will “let the dogs out” with discrediting attack ads, which the Democrats must counter. Both sides will still have to spend a lot of money in the summer and fall, and the battles will be intense. I see the Democrats winning the House of Representatives but as of now, I feel the victory may not be as lopsided as people are expecting.

Donald Trump’s Health

The following are general psychic impressions, not medical diagnosis or medical opinion. I believe the President’s general health is fair, even though some people point to specific visuals as symptoms of illness. I feel Mr. Trump has some chronic conditions, but his medical team keeps close watch and is not forthcoming about his testing results and what he is being treated for. I feel the stress of recent developments drains him, as do his poll results, which he seems to be keenly aware of. There will be situations at the end of the summer of 2026 which will tax him greatly, but I see him recovering in the fall of 2026.

Although at 79-80 years of age Mr. Trump may continue to exhibit possible age-related decline in communication or memory. But at this time, I do not feel that his health conditions will dictate that an inability to function will require his removal from office.

President Trump, Generally

The President’s fortunes will be a bit suppressed for the next four months, but then by his birthday in June, he will perk up and feel expansive as he goes into campaigning mode during summer and early fall. His polls may even begin to rise as well. He will be putting out energy trying to cement his legacy and maintain momentum for the G.O.P. to win the midterms, which he feels would still give him an outside chance for a third term. However, after early November his energy drops, which could relate to the election outcomes. I do not get that he will be able to run for a third term.

International

Science

Recently I have seen that research is being done somewhere whereby what a human subject is hearing or seeing can be transmitted in real-time to a remote receiving technology. The information transfer does not seem to be accomplished with radio signals, but psychically, similar to remote viewing. I am not sure if this will be achieved through a brain implant or some genetic manipulations, and it is possible that extra-terrestrials are involved in assisting with this development. This process, if successful, would result in a sea-change in surveillance, security, warfare and spycraft.

Ukraine War with Russia

At this time, I see tension and friction not only between Ukraine and Russia, but also conflict about the war within both Ukraine and Russia. Russia’s historic military philosophy has been to pour massive numbers of soldiers and equipment at the enemy, and keep doing that in order to overwhelm the enemy until they surrender, with Russia disregarding the losses. Ukraine has countered with the creative use of Western technology and money. I get that Russian leaders are trying to adapt with their own military creativity, as well as creativity in trying to find a face-saving way out for Vladimir Putin. I see Ukraine receiving much more financial help in four months, as other countries see Ukraine continuing to hold their own while weakening Russia militarily and economically. Unfortunately, I feel it will be about two more years before some sort of a peace deal can actually be put in place, but because of the terms, Ukraine even then will not feel totally secure or protected from another Russian attempt to invade.

Donald Trump and Vladimir Putin

Although these two men were feeling a connection in the recent past, at the moment they are on the outs, as I feel Mr. Trump now feels not acknowledged or listened to by Mr. Putin. I believe Mr. Trump has tended to be enamored with national leaders who appear to be “strongmen” bordering on being rulers. I feel both men can be transactional but with differing styles. Mr. Trump is comfortable being exposed and communicative, while Mr. Putin never shows his cards and operates behind the scenes. Since the cold war, Russia has been accused of documenting indiscrete behaviors of foreign celebrities and politicians in order to blackmail them. For several years I have said that apart from Mr. Trump’s apparent “bromance” with Mr. Putin, I feel Russia has done surveillance on Mr. Trump for a long time and has “something on him.” Maybe it is the Epstein relationship or even more. I believe these two men knew each other in a past life, I get in the middle East, where I believe they vied for control of the same country. I sense that in that life, as in this one, Putin feels Trump gets things easy, while he (Putin) always has to work hard for everything. In the near future there seems to be a six-month cycle with the Trump/Putin relationship, where in the next six months there will be difficulty, and for six months after that the relationship will be more positive, which I hope will be good for our country. For decades I have said that Vladimir Putin is not a friend of the U.S., and never will be.

The U.S. and China

China is now putting across a friendly face, and will continue to do so for the rest of 2026. However, they will be constantly working against us in cyber, spycraft, industrial espionage and infiltration of industries. I get they will continue this approach for the rest of Mr. Trump’s term, hoping that the divisiveness in our society will erode our power and our moral resolve, and Mr. Trump’s administration will do China’s work for it. Four years from now (one year into a new president’s term) I see a big blowup between the U.S. and China, escalating over an 18-month period to a possible limited shooting war. But I don’t think a nuclear war will result (I hope). I do not get that it is particularly about Taiwan.

China Moving to Retake Taiwan

China was able to take back Hong Kong and Macao peacefully because both were on 99-year leases to European countries. But, Taiwan is a break-away republic and China has wanted it back for 75 years. For the last several years I have been extending my predictions about a date for China’s moving to take Taiwan from 2024, to 2026, to 2030. Now I feel China has not felt able to predict Donald Trump’s decisions or behaviors and has settled into a patient waiting to see what the U.S. will do. I believe China’s hope is that the U.S. overseas commitment will wane, and that the U.S. empire will implode and weaken, and will not or cannot come to Taiwan’s aid, allowing China to walk in with less resistance. I now see that China is destined to absorb Taiwan, although it might happen in 2035 or later.

Stopping and Reversing Climate Change

I get that we have 2 ½ years to begin to stop and reverse climate change or 3 ½ years just to slow climate change. After that…(??) Indigenous cultures around the world have known to take only what they need and leave the rest. We humans with a need for short-term gratifications and wanting more and more, have pushed the dodos, passenger pigeons, Tasmanian tigers, and almost all the bison and many African animals to extinction. We have also assailed our land and ocean ecosystems. Mother earth has withstood several earth-changing mass extinction events, and will survive and replenish after another, if necessary, albeit without us. Human solution: maybe we can get our E.T. friends to teleport our millions of tons of trash to Pluto or somewhere? I.e., get someone else to fix our problem.