“FAFO” Narrative Drives the Markets in 2026

The “buy America” narrative had started to evolve again with the US dollar growing since the beginning of the first week of 2026, and stock indices moving higher, especially DAX (German index), which is being driven by rising military expenses and defensive stocks such as Rheinmetall, which had grown for more than 20% in 2026 alone, and for around 150% in 2025. The trend for defensive stocks will probably be dominant for the upcoming weeks and months, given the development of geopolitical trends: the US ...