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FAFO "Buy American" strategy returns, 2026 outlook analysis on gold and US stocks trends
Entering early 2026, the main theme of the global financial markets is gradually becoming clearer, with the “FAFO (Buy American)” strategy reasserting its dominance in asset allocation. Overall, the US dollar and major stock indices are performing relatively steadily, while cryptocurrencies have experienced a phased correction, reflecting a shift in risk appetite from high-volatility assets to traditional defensive and core market assets.
Since the first week of 2026, the “Buy American” narrative has clearly gained momentum, with the US dollar index strengthening and the US stock market stabilizing simultaneously. Meanwhile, the German DAX index has performed particularly well, driven mainly by increased expectations for military spending and defensive stocks. Rheinmetall’s stock price has already risen over 20% in early 2026, with an almost 150% increase for the entire 2025 year, making it a representative target in Europe’s defense sector.
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