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Waves of tariffs from President Donald Trump unleashed chaos across global markets in 2025, reigniting trade tensions and rattling investors. Throughout the year, dozens of executive orders on tariffs and modifications to existing tariffs came into effect (1), with Americans experiencing the largest tax increase since 1993 at $1,100 per household — rising to $1,400 in 2026 (2).
But while a tax increase may be unpleasant, billionaire hedge fund manager Ray Dalio says the real storm has yet to arrive.
In a lengthy social media post in April, Dalio argued that the tariff drama is merely a symptom of deeper structural problems.
“We are seeing a classic breakdown of the major monetary, political and geopolitical orders,” he wrote (3).
Dalio outlined five forces he described as reshaping the global landscape.
1. The global monetary order
Dalio said the global economic order is breaking down due to unsustainable debt and deep imbalances between debtor nations like the U.S. and creditor nations like China. As these imbalances unwind, Dalio warned the current monetary order will be forced to change in “big disruptive ways,” with major consequences for capital markets and the broader economy.
Recently, he also declared that the AI bubble is set to burst, but that investors should hold on a little while longer before selling (4).
2. The political order
Dalio sees the political order of democracies breaking down under the weight of what he calls “huge gaps” in people’s education, income and opportunity levels, as well as values. He said history shows this kind of environment often gives rise to “strong autocratic leaders” — especially when paired with economic and market turmoil.
3. The global power structure
Dalio was blunt on this point: “The international geopolitical world order is breaking down because the era of one dominant power (the U.S.) that dictates the order that other countries follow is over.” He argued it’s being replaced by a “unilateral, power-rules” approach. While the U.S. remains the most powerful nation, Dalio said it is now operating under a more self-interested, “America First” framework.
4. Nature
Dalio added that “acts of nature” — such as floods and pandemics — are becoming more disruptive. He noted that Trump’s tariff actions will affect climate change, “somewhat undermining the world’s ability to address the issue effectively.”
5. Technology
Finally, he noted that rapid advances in technology — such as artificial intelligence — are impacting “all aspects of life, including the money/debt/economic order, the political order, the international order and the costs of acts of nature.”
Dalio didn’t offer specific investment advice in his post. But in a February interview with CNBC, he noted the importance of diversification — and pointed to the role of one time-tested asset.
“People don’t have, typically, an adequate amount of gold in their portfolio,” he said (5). “When bad times come, gold is a very effective diversifier.”
Gold is considered a go-to safe haven. It can’t be printed out of thin air like fiat money — and because it’s not tied to any single currency or economy, investors flock to it during periods of economic turmoil or geopolitical uncertainty, driving up its value. Over the past 12 months, gold prices have surged by around 55%.
A gold IRA allows you to invest in gold and other precious metals in physical form while also providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Just keep in mind that gold is often best used as one part of a well-diversified portfolio.
Dalio isn’t the only one who believes the market is set for a shakeup in the coming years.
“It’s likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months,” Goldman Sachs CEO David Solomon said in November at the Global Financial Leaders’ Investment Summit.
Meanwhile, the Shiller P/E has just soared past 40x, a level last seen in 1999, hinting that the decade ahead may bring below-average returns for those tied to the S&P 500.
With these warning signs, diversification isn’t just smart — it’s essential. Billionaires like Jeff Bezos and Bill Gates continue to invest heavily in stocks, but they also allocate a portion of their portfolios to alternative assets.
One standout example: post-war and contemporary art, which outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.
Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat.
Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.*
Moneywise readers can receive priority access to this diversification strategy — skip the waitlist here.
*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd.
Many experts — including Federal Reserve Chair Jerome Powell and JPMorgan CEO Jamie Dimon — have warned that Trump’s tariffs could trigger a significant rise in inflation.
While gold remains a classic hedge, real estate offers a time-tested alternative — with the added benefit of generating passive income.
When inflation rises, property values often increase as well, reflecting the higher cost of materials, labor and land. At the same time, rising living expenses tend to push rents higher, helping landlords offset the erosion of purchasing power.
Traditionally, investing in real estate meant buying property outright and becoming a landlord. New investing platforms are making it easier than ever to tap into the real estate market.
If you’re interested in real estate investing — but not interested in being a landlord — you’re not alone. You don’t have to look far on finance forums like BiggerPockets to find landlords complaining about the various problems they deal with on a daily basis (6). Being a landlord is far from passive.
But that doesn’t mean you can’t reap the benefits of real estate investing.
If you want to avoid the hefty down payment and the burden of being a landlord, crowdfunding platforms like Arrived can provide a passive real estate investing option.
The process is simple — just browse their curated selection of homes vetted for appreciation and income potential. Once you choose a property, you can start investing today.
Another option is mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties. mogul gives high-net-worth investors monthly rental income, real-time appreciation and tax benefits — minus the late-night tenant calls.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Sign up for an account and browse available properties to get started. Once you verify your information with their team, you’re ready to invest like a mogul.
If commercial real estate sounds appealing, First National Realty Partners (FNRP)](https://moneywise.com/c/1/227/1177?placement=13) can help accredited investors break into the market. FNRP allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, you can invest in these properties without worrying about tenant costs cutting into potential returns.
Navigating today’s financial landscape can feel overwhelming. With markets swinging wildly and expert opinions often clashing, it’s difficult to know where to put your money. If you’re finding it difficult to make sense of the noise, now could be the right time to get in touch with a financial advisor.
With Advisor.com, you can find the best finance professional to help fulfill your wealth goals. This free service helps you find the right financial advisor for you by matching you with a small list of the best options for you to choose from.
