Tariffs are in the news, causing chaos in the global economy.
As I write, the U.S. dollar is nearly 10% weaker than the euro and nearly 5% weaker than the pound compared to where it was at the beginning of the year. The S&P 500 hit a low of 10% loss in April compared to January. It’s rebounded… and this isn’t the lowest the currency exchange has been in the last six months either… but while I like a good fairground ride, this isn’t the kind of rollercoaster I enjoy being subjected to.
To paraphrase a Chinese proverb, the best time to diversify out of the U.S. dollar and stock market was six months ago. The next best time is now.
When the stock market is soaring, the anti-real estate crowd likes to write in and gloat. They say that real estate isn’t a great investment because their portfolio grew X% in the previous year and the value of their house only went up Y%.
Cryptophiles and gold bugs say the same thing.
Everyone has their preferred investment category, but that doesn’t mean the others aren’t good investments. At a minimum, you should hold some of the other categories in your portfolio, even if you really only believe in one.
A preference for real estate hasn’t kept our in-house investment experts from holding stocks, mutual funds, or precious metals. It has, however, allowed them to sleep better at night… even during the last few months of tariff whiplash.
Don’t let the uncertainty of the world right now keep you from creating a strong, diversified, global investment portfolio.
If you didn’t diversify out of the U.S. dollar and stock market six months ago, the next best time is now… learn more in this week’s video:
