A year into the new U.S. administration, confidence in American leadership faces mounting pressure—and Europe is charting its own course. Faced with shifting geopolitical dynamics, European nations are accelerating moves toward strategic autonomy, reducing their traditional dependence on American security guarantees. This realignment has broader implications for global markets and capital allocation. As traditional power structures evolve, investors are recalibrating their approach to geopolitical risk. The decoupling trend suggests growing fragmentation in international alliances, which historically influences cross-border capital flows and asset valuations. For market participants, this period of flux underscores the importance of monitoring policy shifts and their ripple effects across different regions and asset classes.