@theMarket: Headline noise equals opportunity

A Greenland invasion, the end of NATO, another tariff war, Iranian riots, threats, and counterthreats. This week saw it all. It could have been the end of the world, but it wasn’t. Savvy investors took advantage of the noise.

Talk about TACO (Trump always chickens out)! This week exemplified Trumpian scare tactics. It is remarkable how many investors were influenced, not recognizing this as another page from Trump’s novel, “The Art of the Deal.”

In any case, the ruffled feathers on both sides of the Atlantic after the president’s threat to take over Greenland or else were resolved in short order. The World Economic Summit in Davos set the stage for Trump's speech.

Behind the bluster and bravado, and the back-room negotiations, was the real issue—strategic security. Shipping lanes, undersea infrastructure, defense positioning, and more are real concerns for the U.S. and Europe regarding Greenland and the Arctic.

I call it Gunship Diplomacy mixed with a heavy dose of the new 'Donroe Doctrine’. It is all part of my thesis that Donald Trump is following in the footsteps of presidents like Jefferson, Madison, Monroe, Andrew Johnson, William Howard Taft, Harry Truman, and others who expanded America’s reach for its own gains and strategic interests either by threats or force.

The world is getting smaller, and Greenland and the Arctic, once a remote region, are in reality right next door to China, North Korea, and Russia. Those nations are attempting to expand their presence in the area, as they are in other areas of our hemisphere. It is the reason behind Donald Trump's strategy for the Golden Dome missile defense system. Like Ronald Reagan’s Star Wars initiative, the Golden Dome is all about nuclear missile attacks. It would detect and destroy ballistic, hypersonic, and cruise missiles before they launch or during their flight.

The media focused on Trump’s words rather than the substance of the issue, continuing their typical approach. Trump’s rhetoric often inflames situations, a pattern that is now recognizable.

In any case, all one had to do was look at how the rest of the world reacted. Markets in China, South Korea, and even Denmark did not fall for the noise. The panic selling was uniquely American. It was a great opportunity to buy the dip.

As for the fundamentals, the economy was still expanding in the third quarter of last year, rising at a 4.4 percent pace, slightly higher than the government’s initial estimate. In addition, personal spending rose 0.5 percent in November 2025 versus October. The Personal Consumption Expenditures Index (PCE) for November rose 0.2 percent, the same as in October, which was in line with estimates. All of which implies that inflation is in check, the economy continues to grow, and labor is showing slight moderation, with little hiring or firing.

Earnings season, in typical fashion, is turning out to be a little better than expected, with 78 percent of companies reporting beating estimates. Equities overall are still exhibiting bullish tendencies. This week’s geopolitical tape bomb was met with buying, and market breadth remains resilient. The rotation trade is still working, but the tech sector and growth stocks in general are beginning to signal oversold readings. We could see a bounce in the Mag 7 group if earnings and guidance come in better than expected next week.

The precious metals complex, especially silver, is approaching bubble territory. Typically, in equity markets, tops are processes while bottoms are events (usually due to policy intervention). Conversely, in gold, silver, platinum, etc., bottoms are a process, and tops are an event.

FOMO is white hot in the silver market, driven by the belief that the metal is in short supply, and the U.S. government has deemed it a critical metal. In the case of gold, central banks and many foreign nations are beginning to use gold to settle trade outside of the U.S. Treasury and petrodollar systems. While still bullish on all precious metals, I would not chase them here. If you own them and the miners, I would lighten up here. That does not mean selling out of your positions. Just bank some profits and possibly buy back at lower prices.

However, in the case of copper, I would see any weakness in price as an opportunity to add. In addition, I still think emerging markets, especially China’s A shares, the Shenzhen and STAR markets, have more room to run this year despite their stellar performance in 2025. As for this weekend, stay warm.