Hello Investors!
Today marks President Trump's so-called Liberation Day. In this mid-week edition, I wanted to share a quick note with my thoughts on how to invest in this environment. My goal, as always, is to give you actionable information so that we can all hopefully make a little money regardless of who is president and whether markets are up, down, or sideways.
What happened?
President Trump hosted a special event at the Rose Garden, during which he unveiled "reciprocal" tariffs on all countries with a baseline of 10%. On about 60 countries, those tariffs climb much higher. This means that when goods come from other countries, the US will collect a large percentage of the value of that good as a tax.
There is some debate about who specifically pays that bill. Businesses? Consumers?
It doesn't matter.
The bottom line is that costs go up as these policies create a net drag on the U.S. Economy.
The Market's Response
As of this writing (9pm PT), the S&P 500 is down 2.65% in aftermarket trading. Markets in Asia are down just over 3%. While the initial shock has recovered somewhat, the reality is that this is very likely the beginning of a protracted and painful Trade War between the U.S. and much of the rest of the world. We have yet to see responses from other countries, and I would not be surprised to see retaliatory tariffs, economic sanctions, and new alliances that exclude the U.S.
Among the uncertainty, two things are certain in my mind:
- This shift in policy will leave lasting damage and unforeseen impacts on the U.S. as well as the global economy
- I need to ensure at minimum that my portfolio outpaces inflation, ideally more than just a percentage or two each year
What Do We Do Now?
Long-time readers know that unlike other creators and commentators, I don't just pontificate about what could happen or throw up my hands and say "it's complicated." I strive to provide you with the same actionable steps that I use for my own investing and financial journey.
The good news is, you've probably heard me say the same things over and over.
In fact, if you've been following along, you are probably pretty happy with your investments and financial situation so far this year.
If not, then let's recap:
In this video, I went in detail about How I'm Building a Successful Investment Strategy in 2025. If you haven't seen it, I highly recommend you watch it. If you don't have the time, here are the key points:
- If you have the means, consider investing in real estate. You can do this through REITs like $VNQ or $GOOD, or you can buy passively managed properties in the midwest with about $25K down. Real estate is a fabulous asset to own in this environment.
- While ETFs are great long-term investments, I mentioned that in 2025 I will be focused on individual stocks. As markets continue to sell off, many great companies will get caught in the crossfire creating (cliche incoming) generational buying opportunities. Of course I will be sharing these opportunities here and on my YouTube channel as I find them, so stay tuned.
- Most importantly, I mentioned focusing on a strong financial profile by:
- Maxing out retirement accounts
- Building an emergency savings
- Reducing consumer debt
- Reviewing insurance coverages
And in this video, I went in depth on How to Invest During a Trade War. If the last video was optional, this one is required.
In the video, I explain my stance on tariffs, and which assets I believe will perform best given all the information I have available to me. Those are:
- International Stocks: $ACWX
- Gold: $GLD
- Utilities: $XLU
- Real Estate: $VNQ or $GOOD
Here is a snippet of those assets compared to the market YTD:
As I mentioned above, this is very likely just the beginning. If you take nothing else from my content, please consider shoring up your finances, reviewing your investment portfolio to make sure it aligns with your goals, and don't make any decisions based on emotions alone.
If you have any questions about the content in this newsletter, or anything else related to finance and investing, don't hesitate to reach out. I'm right here with you on the other side of this email.
Until next time.
-Brian
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