Although gains in both are expected to continue regardless of what happens to Greenland, investors face the dilemma of how to position for any longer-term fallout. For investors hoping for less risk after last year's tariff turmoil, the news makes for an uncomfortable start to 2026. European defence stocks hit fresh all-time highs on Monday and last week posted their biggest weekly jump in over five years, with a 10% gain. If Europe must rely less on the US for its defence, it is no surprise that investors are buying European defence stocks, a sector that's more than tripled since Russia's 2022 invasion of Ukraine. Political risk hard to priceBeyond buying gold and defence stocks, other trades are more difficult for investors to pick.
