3 Ways to Keep Your Portfolio Safe During Tariff Volatility

Ladies and gentlemen, buckle up! The market is in a tailspin, and the tariff war is heating up. President Trump has just announced a 10% tariff on most U.S. imports, and the world is on edge. But don’t panic! There are ways to protect your portfolio from this volatility. Let’s dive in and find out how to keep your investments safe.

1. Diversify Your Supply Chains

First things first, you need to diversify your supply chains. Companies that rely on a single country for their supplies are in big trouble. The tariffs are going to hit them hard, and their stock prices are going to tank. So, do this: Encourage the companies you invest in to source materials and components from multiple countries. This way, they won’t be at the mercy of any one country’s tariffs. For example, companies can shift some production to Mexico and Canada, which have been spared new levies for now. This is a no-brainer!

2. Hedge with Safe-Haven Assets

Next up, you need to hedge your bets with safe-haven assets. Gold is the king of safe havens right now. It’s up 18% during the first seven months of 2008 while the S&P 500 fell 37%. Gold is a store of value, and it’s going to protect your portfolio from the inflationary impacts of these tariffs. Invest in gold ETFs like the Invesco Physical Gold ETC (SGLD). It’s a low-fee way to get exposure to gold, and it’s going to serve you well in these turbulent times.

3. Invest in Defensive Sectors

Finally, you need to invest in defensive sectors. These are the sectors that are going to hold up even if the market tanks. Consumer staples and utilities are your friends right now. People are still going to need toilet paper and electricity, no matter what happens with the tariffs. So, load up on ETFs like the Xtrackers MSCI World Consumer Staples UCITS ETF (XDWS) and the Xtrackers MSCI World Utilities UCITS ETF (XWUS). These are going to provide stability during market downturns.

The Bottom Line

Listen up, folks! The tariff war is real, and it’s going to cause some serious volatility. But if you diversify your supply chains, hedge with safe-haven assets, and invest in defensive sectors, you’re going to be just fine. Don’t let the market’s fear and greed get the best of you. Stay calm, stay smart, and stay invested. You got this!