🚀 Defence stocks rise as Trump calls for increased military spending

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Market Overview
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Year To Date Performances:

1. In a direct response to the escalating geopolitical instability following the capture of Nicolás Maduro, global defence stocks have undergone a violent "V-shaped" recovery following President Trump’s call for a record $1.5 trillion military budget for 2027. This proposed 50% increase from the $901 billion 2026 baseline initially triggered market anxiety as the President paired his "Dream Military" vision with a blistering ultimatum to "Big Five" contractors like RTX and Lockheed Martin: he threatened to block all stock buybacks and executive dividends until these firms shift their capital toward "NEW and MODERN" domestic production plants. However, the sheer scale of the $500 billion spending hike—which Trump claims will be funded by a massive surge in tariff revenues—quickly overshadowed his regulatory threats, sending shares of Northrop Grumman and Leonardo soaring in pre-market trading. This fiscal "shock and awe" campaign not only signals a permanent shift toward a high-readiness war footing but also forces a fundamental reckoning for the defense industry, as companies are now caught between the promise of unprecedented contract volumes and the administration's aggressive new demands for industrial reinvestment over shareholder distributions.

2. After years of pandemic-driven volatility, the U.S. housing market has finally begun to tilt toward a state of equilibrium, with a growing cohort of real estate agents now characterizing the landscape as "balanced" for the first time since the subprime crisis. According to the fourth-quarter CNBC Housing Market Survey, nearly 38% of agents report a shift away from the buyer-dominated stagnation of late 2025, a change fueled by a 20% surge in inventory and a stabilizing mortgage environment where rates have settled into a "new normal" between 6.2% and 6.4%. While prices remain historically high, the psychological "lock-in effect" is showing cracks as sellers—facing a record 92% price-cut rate—are increasingly forced to offer concessions or delist entirely to meet the demands of a more discerning, lifestyle-driven buyer. This transition toward a "neutral" market is expected to accelerate throughout 2026, with economists predicting modest national price growth of 1% to 2% and a potential re-entry of sidelined buyers as home-value appreciation slows to its most sustainable pace in over a decade.

3. In the shadow of a lightning-fast military operation in Venezuela that deposed Nicolás Maduro just days ago, President Donald Trump has reignited a high-stakes geopolitical firestorm by renewing his aggressive pursuit of Greenland. Framing the mineral-rich Arctic island as a vital "national security priority" to counter Russian and Chinese influence, the White House has notably refused to rule out military force, with officials asserting that such measures remain "always an option" despite Greenland being a territory of NATO ally Denmark. This territorial ambition has plunged the alliance into a historic crisis, prompting Danish Prime Minister Mette Frederiksen to warn that any American aggression would signify the end of the post-WWII security order, while Secretary of State Marco Rubio prepares for a tense summit with Danish and Greenlandic counterparts next week. Amidst this diplomatic brinkmanship, the 57,000 residents of Greenland remain steadfast in their desire for independence rather than annexation, leaving the global community to wonder if the administration’s "ego-politics" will ultimately dismantle the very alliances that have anchored Western stability for nearly a century.

   Headlines

   1. Nine Republicans have voted with Democrats to force a vote to enhance tax credits for Obamacare plan holders.

   2. Trump says the US will ban large investors from purchasing homes.