Written by: Steven Feldman, CEO Hard Assets Alliance
I have a long career as an investor and worked on Wall Street for over 20 years. I have had my fair share of “all red” day where virtually all stocks were down. The global financial crisis, 9-11, and pandemic all come to mind. But what is interesting about today’s “all red” day is that it is not actually “event driven” like the other red days. This is the day that President Trump, via sweeping tariffs, has signaled an unprecedented rejection of the cooperative global economic system that has benefited America for over 75 years.
Unlike 9-11 or the pandemic, the economic shifts relating to the tariffs and “hard power” moves across the globe, are irreversible. Even if future administrations attempt to restore diplomatic and cooperative approaches, the trust that underpinned America’s economic dominance has been shattered beyond full repair. Global friend and foe now understand that U.S. economic (and foreign) policy can be chaotic, unpredictable and reverse completely every four years, making America an unreliable partner for any long-term economic planning.
The dollar’s status as the world’s reserve currency—which has provided enormous advantages including lower borrowing costs and protection from foreign exchange volatility—is now fundamentally at risk. Every time this administration threatens tariffs or manipulates currency values, trust in the dollar erodes. The consequences can be devastating for American households and businesses alike.
The administration’s approach of exploiting economic vulnerabilities rather than building shared prosperity turns the post-WWII economic framework on its head. Instead of using commercial ties to bind nations together and mitigate conflict, as was the guiding principle that won Secretary of State Cordell Hull the Nobel Peace Prize in 1945, Trump is weaponizing these ties to create leverage through coercion.
A New York Times article today reports that among our allies, there is now a deep fear developing that America is creating a new global order solely focused on self-aggrandizement. This fear is driving concrete action. Japan and South Korea—supposedly our partners in countering China—have already begun meeting with Chinese representatives to discuss expanded regional trade ties. This realignment will accelerate as nations seek stability outside America’s increasingly erratic economic orbit.
We are witnessing a permanently changed investor landscape, altered not just by the shifting leadership of the global economy but by fundamental transformations in capital flows, trade flows, inflationary pressures, dollar dominance and the attractiveness of US Treasuries. The continuation of ever-larger deficits and debts, combined with waning international confidence in American policy stability, creates a perfect storm for traditional investment approaches.
In this new reality, prudent investors must adapt their strategies accordingly. The conventional wisdom of recent decades—heavy allocations to US equities and bonds, minimal inflation hedges, and faith in the dollar’s supremacy—is now officially outdated. Gold and other hard assets will play an increasingly critical role in preserving wealth amid this paradigm shift, serving not merely as inflation hedges but as stability anchors in an increasingly uncertain global financial system.
I believe this restructuring of the global economic system will prove far more consequential than market analysts currently predict. The America-centered financial world we’ve known is degrading, not just temporarily changing. Those who prepare accordingly will be positioned to weather the storm.
Protecting your wealth has never been more crucial.
Sincerely,
Steven Feldman
CEO, Hard Assets Alliance
