Market uncertainty is lingering after one particular action from Donald Trump caused a long-term disturbance, a financial analyst has shared.
Nicholas Sargen, an economic consultant, believes Trump has done little to appease the markets after a pitched takeover of Greenland. Writing in The Hill, Sargen suggested there could be a worsening of economic standings in the next few weeks. He wrote, "Nonetheless, the big unknown is how long markets will stay calm in the face of growing geopolitical uncertainty. In this regard, there are several indications of growing unease."
"One is the steady surge in prices for gold and silver to record highs and renewed pressure on the U.S. dollar recently. It sank to a four year low this week after Trump said he was not concerned about the slide.
"Another is evidence that trading partners of the U.S. are diversifying their exports away from the U.S. to Asia, Latin America and other regions. Canada is also in the process of securing a trade deal with China, for which President Trump has threatened to impose 100 percent tariffs on it."
European markets may react poorly too, with Sargen suggesting there could be trouble brewing in worldwide markets.
He wrote, "Meanwhile, some observers have speculated about Europe 'weaponizing' its sizable holdings of U.S. stocks and bonds. The likelihood of mass selling of U.S. securities is low, however, as most of them are held by private funds."
"That said, international equities have outperformed U.S. stocks over the past year following a prolonged period in which they underperformed. One sector that has produced stellar returns is defense stocks. A Bloomberg article notes that a Goldman Sachs basket of European defense stocks is off to a strong start in 2026 following a 90 percent advance in 2025."
"Amid this, investors need to consider what a weakening of U.S. leadership would mean for the world. "