This week on the markets can safely be called “Trump week.” If there were corruption in the US president’s circle, and his associates were thinking about money rather than the interests of the state and the whole world, they would certainly have earned more than a dollar by betting on the change in mood in Mr. Trump’s fateful strategic statements. And, in general, why analyze some macroeconomic data or read boring quarterly reports of companies when we have Trump, whose ideas cause markets to fly up and down and investors to earn and lose billions in a matter of days? This is a quick review from Ivan Kompan, Edinburgh Business School analyst.
On Saturday evening, Trump tweeted that he would raise tariffs on all imports from Denmark, Sweden, Norway, France, Germany, the UK, the Netherlands, and Finland — countries allegedly obstructing his plan to buy Greenland. Fortunately, the statement came before a long weekend, with markets closed on Monday for Martin Luther King Jr. Day. Otherwise, the immediate market reaction could have been dramatic. Even so, when trading resumed on Tuesday, sentiment remained pessimistic: stocks, bonds, and crypto all suffered, forcing investors to watch their portfolios shrink.
The investment community even started talking about a “Sell America” strategy — a shift away from U.S. assets. According to Deutsche Bank, developed European countries targeted by Trump hold around $8 trillion in U.S. Treasuries, twice as much as the rest of the world combined. If the U.S. is now on the other side of the barricades, why should European central banks, pension funds, and sovereign funds keep Treasuries in their portfolios? Rumor has it that the analyst who raised this question has already been fired.
But, as always, time heals. By Wednesday in Davos, Trump had reversed course, withdrawing his Greenland threats and once again proving that TACO — Trump Always Chickens Out — is alive and well. After three days of the “Greenland crisis,” little had changed: major indices remained near previous levels, though volatility was high — and someone undoubtedly made good money on it. That is market manipulation in its purest form.
Beyond TACO-traders, gold and silver investors also benefited this week as precious metals rallied. Trump’s behavior and habitual reversals are themselves a source of uncertainty — and in such chaos, gold and silver traditionally serve as reliable hedges.
Amid geopolitical drama, economic and corporate news was largely overlooked — unjustifiably so. U.S. GDP grew by 4.4% in Q3 2025, beating expectations and accelerating from Q2. The PCE inflation index came in at 2.8% year-over-year, in line with forecasts but slightly higher than the previous month. The U.S. economy looks solid — which raises a key question: is it really wise to cut rates, as Trump insists, when growth is strong and inflation remains well above target?
On the corporate front, Netflix and Intel disappointed investors with cautious outlooks, triggering declines in their share prices. Still, the earnings season for tech giants is only beginning, so pessimism may be premature.
What comes next? Markets today depend more on Trump’s ideas than on fundamentals — and no one knows what other ambitions may be forming in his mind besides Greenland. Another powerful driver is AI, but we’ll revisit that next week, once tech giants report earnings. For now, one conclusion seems clear: diversification remains the only rational strategy. If “Sell America” sounds excessive, “Diversify America” feels just about right.
*And finally, we would like to remind you that the information you have just listened to is not an investment advisory. Remember – investments in the stock market are always tied up with financial risks. So be careful and cautious.
