Key Points
- President Trump’s return to the White House fueled both market rallies and volatility.
- “Trump-branded” crypto coins soared and then crashed, losing over 80% of their value.
- Famed investor Michael Burry publicly bet against AI giants Nvidia and Palantir.
- European defense stocks increased by more than 150% as governments increased military spending.
This past year was a wild ride for investors. Across the globe, high-conviction bets paid off handsomely for some, while others crashed and burned spectacularly. From the rise of European defense stocks to the sudden collapse of a popular currency trade in Turkey, 2025 delivered both substantial gains and painful reversals.
President Trump’s return to the White House set the tone for the year. His policies on trade and crypto lit a fire under certain markets, but also created significant uncertainty. For example, a whole group of “Trump-branded” crypto coins was launched with significant hype early in the year.
After an initial surge, most of them have since lost more than 80% of their value. This proved that even with a powerful friend in the White House, the basic rules of speculation still apply.
The artificial intelligence trade also faced a major test. Michael Burry, the investor famous for predicting the 2008 housing crash, disclosed that he was betting against AI giants such as Nvidia and Palantir. His move sent a shiver through the market and crystallized the growing fear that AI stock prices had simply gotten too high.
While these stocks later recovered, it was a clear sign that even the most dominant market trends can turn abruptly.
Perhaps the biggest surprise of the year was the performance of European defense companies. After Trump announced he would reduce funding for Ukraine, European governments undertook a massive spending spree. This sent shares of companies such as Rheinmetall soaring by more than 150%. A sector that was once considered too controversial for many investors suddenly became a must-own.
Looking back, 2025 was defined by big bets on politics, technology, and fragile economic narratives. As we head into 2026, investors are still grappling with the same old problems: shaky companies, stretched valuations, and trendy trades that work great—until they don’t.
