Key Market News: |
Trump en route to Davos with Greenland dominating agenda—refused to rule out force, saying "You'll find out," raising NATO stability concerns among allies Stock futures rise modestly after worst day since October: S&P 500 down 2.1%, Dow fell 875 points, Nasdaq dropped 2.4% on Tuesday Trump threatens 10% tariffs on 8 European nations starting Feb 1, escalating to 25% by June unless Greenland deal reached Global LNG supply set to jump 10% to 475 million metric tons in 2026, likely depressing prices below $10/MMBtu and spurring demand growth Netflix beats revenue estimates in holiday quarter, but $NFLX ( ▼ 0.84% ) dropped about 4.81% after hours on Tuesday Wall Street issues new crisis alert*
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Trump wants Greenland. And it's not just talk anymore. |
Behind closed doors, Ronald Lauder, billionaire and Trump's longtime ally, has been pushing this idea hard. The 80-year-old heir to the Estée Lauder fortune didn't just whisper in Trump's ear. |
He funded studies, connected diplomats, and built a case for why America needs this Arctic island. |
 | Ronald Lauder, president of the World Jewish Congress (Michael Kappeler/dpa/picture alliance/Getty Images) |
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Here's what we know: Lauder's been working on this since Trump's first term. He commissioned research through his World Jewish Congress connections. He met with Greenlandic officials. And he's got skin in the game, his foundation holds mining interests in the region. |
But here's the thing. This isn't just about ice and minerals anymore. |
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The Defense Angle You're Not Hearing About |
Greenland sits between North America and Europe. Russia and China both want Arctic access. The island has rare earth minerals that power everything from fighter jets to smartphones. |
And defense contractors know it. |
Since Trump floated the Greenland idea in December, defense stocks tied to Arctic operations jumped. Not all of them. Just the ones positioned for cold-weather military expansion and resource security. |
Real talk: This matters for your portfolio. |
| | | | What worries you more about this Greenland move? | |
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Who Benefits When Borders Move |
Think about what happens when the U.S. expands its security footprint. More bases. More surveillance. More supply chains to protect. |
Lauder's involvement tells us something important. He's not a defense guy by trade. He built his wealth in beauty products. But his World Jewish Congress work gave him access to European and Greenlandic leaders. And his mining interests aligned perfectly with Trump's "America First" resource strategy. |
When a cosmetics billionaire starts pushing geopolitical expansion, it means the money crowd sees opportunity. They see minerals. They see strategic positioning. They see defense contracts. |
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The Stocks Moving Right Now |
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Some defense companies are already positioned for Arctic expansion. Others are scrambling to catch up. |
Look at the companies with cold-weather tech. The ones building ice-capable ships. The ones supplying remote military installations. And especially the ones with rare earth processing capabilities. |
Here's the breakdown: |
Lockheed Martin ( $LMT ( ▼ 1.09% ) ) builds the F-35s that would patrol Greenland airspace. They've got Arctic-capable surveillance systems already deployed in Alaska. Their contracts don't need Greenland to happen, but if it does, they're first in line. Northrop Grumman ( $NOC ( ▼ 1.44% ) ) makes drones and satellites tracking Arctic movement right now. Their Global Hawk surveillance platform operates in extreme cold. They've been preparing for this scenario since 2020. Huntington Ingalls ( $HII ( ▼ 2.42% ) ) builds icebreakers and Arctic-ready vessels. The U.S. Coast Guard needs more of these. Way more. And if Greenland becomes U.S. territory, that need multiplies fast. $RTX ( ▼ 2.75% ) (formerly Raytheon) supplies missile defense systems for northern installations. They've got contracts in Alaska and Canada already. Greenland would extend that network. General Dynamics ( $GD ( ▼ 2.24% ) ) builds submarines and Arctic communication systems. Their contracts include Cold War-era installations being modernized right now.
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But the real story isn't just defense contractors. |
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The Mining Play |
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Greenland has rare earth deposits that could break China's monopoly. These minerals power military equipment, electric vehicles, and renewable energy systems. |
Lauder knows this. His foundation's mining interests in Greenland aren't public knowledge, but they're real. And they connect directly to his Trump lobbying. |
MP Materials ( $MP ( ▼ 0.87% ) ) processes rare earths in California. They're the only significant U.S. producer. If Greenland opens up, they're positioned to process those minerals domestically. Albemarle ( $ALB ( ▲ 5.83% ) ) focuses on lithium, but they've got rare earth exposure too. Arctic mining would need their extraction technology.
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The timeline matters here. Trump takes office next week. Greenland's prime minister already said no to being purchased. But Trump doesn't take no for answers like that. |
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What Investors Should Watch |
First, ignore the headlines saying this won't happen. Focus on what's already moving. |
Defense budgets don't shrink when territorial ambitions grow. Even if Greenland never becomes the 51st state, the Arctic is militarizing fast. Russia's building bases. China's sending research ships. The U.S. will respond. |
Second, watch the rare earth sector. China controls 80% of global processing. That's a national security problem. Greenland could change that equation overnight. |
Third, pay attention to infrastructure plays. If the U.S. expands its Greenland presence, even incrementally, someone's building the bases. Someone's laying the cables. Someone's supplying the remote installations. |
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The Lauder Factor |
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Why does one billionaire's opinion matter this much? |
Because Lauder has Trump's ear in a way most donors don't. He's not just writing checks. He's shaping policy through his international connections. And he's been consistent on Greenland since 2019. |
That consistency signals conviction. And conviction from someone with Lauder's resources usually means money's already moving behind the scenes. |
His World Jewish Congress role gave him access to Danish officials (Denmark controls Greenland's foreign affairs). |
His mining interests gave him motivation. His friendship with Trump gave him influence. |
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The Risk Side |
Let's be clear about what could go wrong. |
Denmark might hold firm. Greenland's population might resist harder. International backlash could force Trump to back down. Or this could all be negotiating theater for something else entirely. |
Defense stocks don't need Greenland to perform well. They've got plenty of other catalysts. But they do need clarity on Arctic strategy. And right now, that clarity is missing. |
Rare earth mining in the Arctic faces brutal environmental challenges. Extraction costs run high. Processing infrastructure doesn't exist yet. This isn't a quick win. |
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The Bottom Line |
You don't need to bet on Greenland becoming American territory to profit from this trend. |
Arctic militarization is happening regardless. Rare earth supply chains are diversifying whether Greenland cooperates or not. Defense contractors are positioning for cold-weather operations with or without Trump's ambitions. |
But Lauder's involvement tells us the serious money is taking this seriously. |
That means three moves make sense right now: |
One, look at defense contractors with Arctic capabilities already in place. They're getting paid today, not waiting for Greenland to happen. |
Two, watch rare earth processors. The U.S. needs domestic supply chains. Greenland accelerates that need, but doesn't create it. |
Three, stay flexible. This situation changes fast. Trump's first term taught us his positions shift based on resistance levels and media coverage. |
The Greenland story isn't about whether Trump succeeds in acquiring territory. It's about what his attempt reveals regarding where defense and resource dollars are headed. |
And right now, those dollars are flowing north. |
Whether you believe in Trump's Greenland ambitions or not, the defense budget is expanding in that direction. The mining sector is exploring those deposits. The strategic importance is growing. |
Your portfolio should reflect that reality. |
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P.S. Fact of the day: Denmark sold the Danish West Indies — now the U.S. Virgin Islands, including what's now called Little Saint James — to the United States in 1917. Little Saint James later became known as Epstein Island after Jeffrey Epstein bought it in 1998. |
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Disclaimer: This analysis is for educational purposes only and should not be considered investment advice. Always do your own research before making investment decisions. |
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