With a large holding of Gold in the portfolio with the Gold Miners ETF and Newmont, we are recommending a 1/3 TRIM of Newmont for a 32% profit.
Given President Trumps erratic behaviour and policy decisions and irregular Chinese and Russia naval movements, we want to maintain a hedge against geopolitical escalation by buying Van Eck Global Defence ETF
Vaneck Global Defence ETF DFND:ASX
The addition of Vaneck Global Defence ETF (DFND) represents a strategic geopolitical hedge that capitalizes on increasing global defense spending, particularly in Europe. This investment provides portfolio diversification through exposure to defense contractors globally, offering protection during periods of international tension. Under the Trump administration, we anticipate accelerated defense spending as European allies respond to increased pressure to meet NATO commitments of 2% GDP allocation to defense. Trump’s “America First” approach and unpredictable foreign policy stance create an environment where European nations must bolster their own military capabilities rather than relying primarily on U.S. protection. This structural growth trend in defense budgets, combined with ongoing geopolitical tensions in Eastern Europe and the Indo-Pacific region, positions DFND to enhance our portfolio’s risk-adjusted returns while providing a logical hedge against geopolitical volatility.
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.