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.

Source: The Edge Markets January 12, 2026 10:17 UTC