Merlin Asset Management's Michael Obuchowski, Ph.D.: 'Lame Duck' Gridlock & AI Boom Signal Bullish 2026

"Buy and Think" commentary argues legislative paralysis will end tariff volatility; identifies $423 billion AI infrastructure buildout as key economic driver

NEWPORT, RI, UNITED STATES, December 24, 2025 /EINPresswire.com/ -- Merlin Asset Management, an independent investment firm known for its high-conviction growth strategies, released a new investment commentary titled "Enter The Lame Duck." Authored by Founder and Chief Investment Officer Michael Obuchowski, Ph.D., the article presents a contrarian outlook for 2026, arguing that anticipated political paralysis in Washington, D.C., will serve as a stabilizing force for equity markets.

In the latest edition of his "Buy and Think" series, Obuchowski challenges the prevailing fear of legislative gridlock. Instead, he posits that a divided government—or a "De Facto Lame Duck" period leading up to the 2026 midterms—will effectively neutralize policy risks and end the volatility caused by aggressive tariff rhetoric.

"We are entering a period most investors fear: political paralysis," writes Obuchowski. "But... legislative gridlock is actually the bullish signal we have been waiting for. The return of a 'Goldilocks DC'—a divided government checking the Executive Branch—will likely end the tariff volatility and clear the runway for fundamentals to matter again."

The "AI Hijack" and Economic Resilience
The commentary analyzes the disconnect between perceived economic fragility and actual market performance. Obuchowski introduces the concept of the "AI Hijack," detailing how a massive $423 billion capital spending boom in AI infrastructure has effectively hijacked and sustained the economy, masking an underlying consumer recession.

Key insights from "Enter The Lame Duck" include:

The De Facto Lame Duck: How the approaching 2026 midterm election cycle is already neutralizing policy risk.

Regulatory Wildcards: An analysis of Learning Resources v. Trump, a Supreme Court case with the potential to invalidate current tariff structures and trigger significant refunds.

The Investment Pivot: A strategic shift away from the "Magnificent Seven" safety trade toward the companies building the physical and digital infrastructure of the future.

Obuchowski concludes that as tariff volatility subsides, the market's focus will return to the tangible fundamentals of infrastructure builders.

About Merlin Asset Management
Merlin Asset Management is an independent, employee-owned investment management firm. Merlin Asset Management builds concentrated, high-conviction portfolios of the world's most innovative growth companies. Our approach is different by design, shaped by our founder's unique journey from clinical psychology to finance. We blend a rigorous, data-driven investment process with insights from neuroscience to mitigate the cognitive biases that often hinder performance and to identify opportunities others may miss. The result is a suite of benchmark-agnostic, low-turnover strategies built to deliver superior, long-term returns.

The full commentary "Enter The Lame Duck" is available on the Merlin Asset Management website and LinkedIn.

Michael Obuchowski
Merlin Asset Management
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