As 2026 kicks off, retail investors are shifting their focus toward defense, energy, and precious metals. This change comes in response to the ongoing geopolitical unrest stemming from developments in Iran, Venezuela, and President Donald Trump’s ambitions in Greenland.
U.S. oil giants Chevron and ExxonMobil are garnering significant attention, especially after Trump’s bold move to challenge Venezuela’s leadership. Investors in the UK are particularly keen on these stocks as they consider opportunities in Venezuela, which holds the world’s largest oil reserves. A trading provider, IG, reported that transactions for Chevron surged to twenty times the average in the first week of January compared to previous months.
Chris Beauchamp, IG’s chief market analyst, noted that the focus is now on potential beneficiaries in Venezuela, including Chevron and Exxon, as the return of U.S. companies could reshape the landscape there. Interactive Investor shared that Chevron ranked as the most purchased U.S. stock as investors reacted to Trump’s claims over Venezuela’s resources.
Optimism surrounds Chevron’s capacity to boost oil production in Venezuela, while Exxon’s CEO remains more cautious, deeming the country “uninvestable.” Meanwhile, BP also saw increased interest and became a top buy on AJ Bell’s platform, following only Imperial Brands, a safer bet in uncertain times.
In addition to energy, defense stocks have seen heightened demand due to recent U.S. military policy discussions. Trump’s proposals to significantly increase defense spending have driven up interest in companies like BAE Systems; trading volume for this UK defense firm jumped by 50% in early January compared to the previous months.
Despite this surge, investment experts like Emma Wall from Hargreaves Lansdown advise caution, stating that finding bargains in this market is challenging, particularly as BAE is considered fully valued at present.
Precious metals, especially gold and silver, are also seeing a rush of investment. Retail interest in gold and silver exchange-traded funds (ETFs) surged by 153% in the opening week of January. The iShares Physical Gold ETC was a popular investment option among traders, while silver’s popularity soared, with trading volumes surpassing previous records by 70%.
Overall, as geopolitical uncertainties continue, small investors are adapting their strategies, showing particular interest in sectors that may stand to benefit from the evolving landscape.