Steve Eisman, the investor made famous by The Big Short, issued a stark warning to investors this week: President Donald Trump's ambition to purchase Greenland is no longer a diplomatic curiosity—it is a genuine economic risk.
Beyond Real Estate: Battle For Resources
In his latest weekly update, Eisman argued that the President is “really serious” about the acquisition, a strategy that has already begun to rattle global markets.
According to Eisman, the administration's aggressive stance is driven by a strategic desire for unfettered access to rare earth metals, which are abundant in Greenland.
However, with 85% of Greenlanders reportedly opposed to joining the United States, the conflict has shifted from a transaction to a battle of “credibility and ego” between Trump and Europe.
“Just when everyone began to relax into thinking the risk of tariffs negatively impacting the economy was over, President Trump brought it right back,” Eisman said. To pressure Denmark, the administration imposed escalating tariffs on eight European countries—starting at 10% in February and rising to 25% by June.
Volatility Returns To Wall Street
The renewed trade tensions triggered immediate volatility. Eisman noted that equity markets suffered a steep decline early in the week, while the 30-year Treasury yield jumped nine basis points. The dollar also declined as investors grappled with the uncertainty.
While markets rallied late Wednesday following a vague announcement from President Trump regarding a “Greenland framework” reached with NATO—temporarily halting the February tariffs—Eisman remains skeptical of the reprieve.
‘Lone Wolf’ Risk
Eisman frames this volatility through his new investment theme of “lone wolves”—contrarian figures like Trump who force their viewpoints onto the mainstream.
He cautioned that despite the midweek rally, the lack of details surrounding the NATO agreement suggests the conflict is unresolved.
“This is not a positive for the markets or for the global economy,” Eisman concluded, warning his listeners that despite the pause in tariffs, “this story is far from over.”
Major Benchmarks Decline Over The Week
The S&P 500, Dow Jones and Nasdaq 100 indices all fell in the previous shortened week.
However, on Friday, the SPDR S&P 500 ETF Trust(NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher. The SPY was up 0.036% at $689.23, while the QQQ advanced 0.32% to $622.72.
On Monday, the S&P 500 and Dow Jones were trading higher, while the Nasdaq 100 was trading lower.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Join thousands of traders who make more informed decisions with our premium features.
Real-time quotes, advanced visualizations, backtesting, and much more.
