Market Overview - The calm in the markets is breaking due to geopolitical tensions, particularly regarding Greenland, which is causing disarray in the European and American alliance [1] - US traders are anticipating a significant sell-off, with S&P 500 futures indicating a potential 1.7% drop, which would negate the year's gains [2] - The VIX Index, a measure of expected stock-market volatility, has surpassed 20 for the first time since November, indicating increased market anxiety [2] Investor Sentiment - Investor confidence is waning as they begin to react to various shocks, including political maneuvers by the White House and concerns over the Federal Reserve [3] - The potential for severe implications exists if current geopolitical tensions escalate, particularly regarding the dollar and broader market stability [4] Bond Market Dynamics - Average volatility across US bonds, equities, and the dollar has reached its lowest level since at least 1990, but recent news has prompted investors to retreat to the sidelines [5] - Japan's bond yields are rising, with 40-year debt yields exceeding 4%, and 10-year Treasuries increasing by six basis points to 4.29%, contributing to investor concerns [6]