[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks bounced higher Wednesday after President Trump assured global leaders at the World Economic Forum in Davos that he would not use force to acquire Greenland—a geopolitical worry that had been unsettling markets and pressuring the dollar.

His comments sparked relief across risk assets, helping equities catch a bid and calming some of the week’s tension. 

Trump, addressing U.S. military and financial commitments to NATO, said, “I don’t have to use force. I don’t want to use force. I won’t use force.” The 10-year Treasury yield dipped as safe-haven demand eased, while the dollar index clawed back early losses to finish in the green. 

That said, even as he ruled out military action, Trump kept things interesting by announcing he would “seek immediate negotiations” on buying Greenland—a topic that still appears very much alive.

He also reiterated his push for Congress to implement a nationwide 10% cap on credit card interest rates, a plan facing stiff opposition from lawmakers. 

The constant stream of headlines kept traders on their toes. European lawmakers responded by suspending the EU-U.S. trade deal reached last summer, citing tensions over tariffs tied to the Greenland dispute.

Trump, meanwhile, confirmed new tariff hikes on goods from eight NATO members—starting at 10% on February 1 and rising to 25% by June 1—unless an agreement is reached. 

Markets swung wildly on the news: an early rally gave way to a midday drop before bouncing back late as Trump’s tone softened.

The Mag 7 stocks moved sharply relative to the rest of the S&P 500, while bond yields eased but rate‑cut bets slumped.

Bitcoin spiked wildly, ripping higher on Trump’s wavering tone. Gold set yet another record high before reversing some gains but still finishing higher, while silver finally cooled off with a modest pullback. 

If the first few weeks of 2026 are any guide, it looks like we’re in for a headline‑driven roller coaster—and the key to surviving it may come down to smart diversification and a disciplined exit plan.

The only question is: will markets find their footing soon, or is volatility the new normal?

[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks got absolutely hammered right out of the gate after President Trump cranked up the heat on Greenland again.

In a Truth Social post over the weekend, he threatened escalating tariffs on imports from eight NATO members (starting at 10% on Feb 1 and jumping to 25% by June 1) unless they agree to sell Greenland to the U.S.

He also hit France with a 200% tariff threat on wine and champagne (Macron apparently isn’t joining his “Board of Peace”) and slammed the U.K. over the Chagos Islands handover as a “national security disaster” that makes Greenland even more critical.

European leaders called it “unacceptable,” with France pushing the EU to hit back hard using its Anti-Coercion Instrument.

That geopolitical mess sparked a full-on flight from U.S. assets—Treasury yields spiked, the dollar sold off, and the major indexes dove deep into the red. The Nasdaq led the downside, mega-caps hit their lowest since Thanksgiving, and the Mag 7 massively underperformed the rest of the S&P 493.

The one bright spot?

Our precious metals holdings saved the day big time. Gold surged +3.7% to a new all-time high above $4,750, and the silver ETF added a strong +5.4% around the $94 level. Those moves more than offset the equity losses, leaving our portfolios nicely in the green overall.

Bitcoin didn’t help much and got pushed back down to the $90K area.

On the hopeful side, equities have strong seasonal tailwinds right now—can that provide enough support to stabilize things after today’s meltdown, or is the geopolitical/tariff noise too loud to ignore?

[Chart courtesy of MarketWatch.com]

1. Moving the market

The major indexes jumped right out of the gate, with banks and tech leading the charge as Wall Street shook off back-to-back losing days.

The real spark came from Taiwan Semiconductor (TSMC) dropping another monster quarter—profit up 35% year-over-year—which lit a fire under the AI trade and boosted investor confidence.

Chip stocks were on fire: the VanEck Semiconductor ETF (SMH) climbed 3%, Nvidia and Micron each added more than 2%, and the whole sector rode the wave.

This happened even after President Trump signed a 25% tariff on certain semiconductors (though chips tied to U.S. tech supply-chain buildout are exempt—so markets mostly shrugged).

Oil prices helped too—Brent and WTI both slid more than 4%, easing inflation worries. Plus, jobless claims for the week ending Jan. 10 came in at 198,000 (better than the 215,000 expected), giving the jobs market another thumbs-up.

Small caps outperformed big time (thanks to another juicy short squeeze), even as bond yields ticked higher. The dollar did its usual pump-and-dump and ended flat.

Metals took a breather after recent fireworks—silver touched a new intraday high of $93.75 early but swung wildly and closed about unchanged. Bitcoin tested $98K overnight before fading back to $96K.

So, what’s the biggest risk for the global economy and markets in 2026? Goldman Sachs points to geopolitics as the top threat… but if history’s any guide, it’ll probably be something nobody saw coming.

With chip stocks roaring back, small caps squeezing shorts, and metals still holding strong despite a breather, this feels like the risk-on momentum is building again for 2026.