Anastasiya Letnikava @Deki1991: "Markets have swung sharply around..."

France

Markets have swung sharply around the “Greenland framework” saga, with initial fears over tariffs on Europe triggering a scramble into safe havens and defence/critical-minerals plays, followed by a relief bounce as rhetoric cooled after Davos. What happened with Greenland The Trump administration framed a new “Greenland framework” around U.S. access to the island’s rare earths, uranium and other critical minerals, presenting it as both a strategic security and economic initiative. Early signals tied the proposal to the threat of tariffs on European allies, triggering a sharp risk-off move. Markets later stabilised after comments from Donald Trump at Davos ruled out the use of force and explicitly walked back near-term tariff plans. Market reaction so far Global equities entered 2026 in what many strategists described as a “hyper-bull” environment, with cash levels at multi-decade lows and positioning stretched, leaving markets particularly sensitive to geopolitical shocks such as the Greenland episode. Flows rotated toward perceived beneficiaries of a U.S.- Greenland deal (critical minerals and rare-earth exposures) and into traditional hedges such as gold. Volatility around European assets rose sharply on tariff headlines before partially retracing as risk sentiment improved. How we’ve repositioned Since early January, we have adjusted the portfolio accordingly, trimming mega-cap tech/Mag7 exposure and adding to gold & miners, defence and selectively to Europe to better reflect this evolving macro and geopolitical backdrop. At the same time, we increased exposure to: Gold and miners, as a hedge against policy risk and renewed volatility $GLD (SPDR Gold) $KGC (Kinross Gold Corp) Defence and security-linked names, supported by Arctic, NATO and European security spending $AVAV (AeroVironment Inc.) $RHM.DE (Rheinmetall AG) $SU.PA (Schneider Electric SE) Select European assets, where valuations remain more reasonable and where any sustained tariff de-escalation could support a catch-up trade Portfolio drag from reduced mega-cap tech exposure has been offset by strong performance in gold/miners and an exceptional contribution from $WISE. What this means for the strategy The portfolio is now less concentrated in U.S. mega-cap growth and more balanced across real assets, defence and Europe, aiming to improve resilience should geopolitical risks re-emerge or broader risk sentiment weaken. Focus over the coming weeks remains on whether the “Greenland framework” evolves into a concrete security and minerals agreement or fades back into the background. Allocation will continue to adjust as signals around tariffs, Europe - U.S. relations and commodity markets become clearer.