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Waves of tariffs imposed by President Donald Trump unleashed chaos on global markets in 2025, reigniting trade tensions and rattling investors. Throughout the year, dozens of executive orders on tariffs and modifications to existing tariffs went into effect (1), and Americans experienced the largest tax increase since 1993, from $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 hasn’t arrived yet.
In a lengthy social media post in April, Dalio argued that the tariff drama is simply a symptom of deeper structural problems.
“We are witnessing a classic breakdown of the main monetary, political and geopolitical orders,” he wrote (3).
Dalio outlined five forces that he believes are reshaping the global landscape.
1. The global monetary order
Dalio said the global economic order is crumbling due to unsustainable debt and deep imbalances between debtor nations like the United States and creditor nations like China. As these imbalances disappear, Dalio warned that the current monetary order will be forced to change in “very disruptive ways,” with significant consequences for capital markets and the broader economy.
Recently, he also stated that the AI bubble is about to burst, but that investors should wait a little longer before selling (4).
2. The political order
Dalio believes that the political order of democracies is crumbling under the weight of what he calls “huge gaps” in people’s levels of education, income and opportunities, as well as in their values. He said history shows that this type of environment often gives rise to “strong autocratic leaders,” especially when combined with economic and market turmoil.
3. The global power structure
Dalio was forceful on this point: “The global geopolitical order is collapsing because the era of a dominant power (the United States) dictating the order that other countries follow is over.” He argued that it is being replaced by a “unilateral and rules of power” approach. While the United States remains the most powerful nation, Dalio said it is now operating under a more selfish, “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 measures will affect climate change, “somewhat undermining the world’s ability to effectively address the problem.”
5. Technology
Finally, he noted that rapid advances in technology, such as artificial intelligence, are impacting “all aspects of life, including the monetary/debt/economic order, the political order, the international order, and the costs of acts of nature.”
Dalio did not offer specific investment advice in his post. But in a February interview with CNBC, he highlighted the importance of diversification and noted the role of a time-tested asset.
“People usually don’t have an adequate amount of gold in their portfolio,” he said (5). “When bad times hit, gold is a very effective diversifier.”
Gold is considered a safe haven. It can’t be printed out of thin air like fiat money, and because it’s not tied to any currency or economy, investors flock to it during periods of economic upheaval or geopolitical uncertainty, driving up its value. In the last 12 months, gold prices have increased by around 55%.
One method that many people use to invest in gold is a self-directed gold IRA.
A gold IRA allows you to invest in gold and other precious metals in physical form while offering the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s best gold IRA options to compare your options for free. Just keep in mind that gold is usually best used as part of a well-diversified portfolio.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)’
Dalio is not the only one who believes that the market will undergo a restructuring in the coming years.
“There is likely to be a 10 to 20% decline in equity markets at some point in the next 12 to 24 months,” Goldman Sachs CEO David Solomon said in November at the Global Financial Leaders Investment Summit.
Meanwhile, Shiller’s P/E just surpassed 40 times, a level last seen in 1999, hinting that the next decade may bring below-average returns for those tied to the S&P 500.
With these warning signs, diversification is not only smart: it is 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.
A notable example: contemporary and post-war art, which outperformed the S&P 500 by 15% between 1995 and 2025, while showing almost zero correlation with traditional stocks.
Until recently, this world was forbidden. Now, with Masterworks, you can buy fractional shares of multi-million dollar works by icons like Banksy, Picasso and Basquiat.
Masterworks has sold 25 works of art so far, generating annualized net returns of 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 Chairman 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 rise as well, reflecting the higher cost of materials, labor and land. At the same time, rising living expenses tend to push up rents, helping landlords offset the erosion of purchasing power.
Traditionally, investing in real estate meant purchasing a property outright and becoming an owner. New investment platforms are making it easier than ever to access the real estate market.
If you’re interested in investing in real estate, but not in owning it, you’re not alone. You don’t have to look hard on financial forums like BiggerPockets to find homeowners complaining about the various problems they face on a daily basis (6). Being an owner 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 large down payment and burden of ownership, crowdfunding platforms like Arrived can offer a passive real estate investment option.
Backed by world-class investors like Jeff Bezos, Arrived lets you invest in rental home stocks with as little as $100, all without the hassle of mowing the lawn, fixing leaky faucets, or dealing with difficult tenants.
The process is simple: simply 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 that offers fractional ownership in prime rental properties. The mogul offers high-net-worth investors monthly rental income, real-time appreciation and tax benefits — minus late-night calls from tenants.
Founded by former Goldman Sachs real estate investors, the team curates the top 1% of single-family rental homes nationwide for you. Simply put, mogul allows you to invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in negative scenarios. Offers usually sell out in less than three hours, and investments usually range 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’ll be ready to invest like a tycoon.
If commercial real estate sounds appealing to you, First National Realty Partners (FNRP) (https://moneywise.com/c/1/227/1177?placement=13) can help accredited investors enter the market. FNRP allows accredited investors to diversify their portfolio through supermarket-anchored commercial properties without assuming the responsibilities of ownership.
With a minimum investment of $50,000, investors can own a portion of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net Leases (NNN), you can invest in these properties without worrying about tenant costs reducing potential returns.
Simply answer a few questions, such as how much you would like to invest, to explore the full list of properties available today.
Navigating the current financial landscape can be overwhelming. With markets swinging wildly and expert opinions often clashing, it’s hard to know where to put your money. If you’re finding it difficult to make sense of the noise, now might be the right time to contact a financial advisor.
With Advisor.com, you can find the best financial professional to help you achieve your wealth goals. This free service helps you find the right financial advisor for you by giving you a short list of the best options for you to choose from.
Schedule a free, no-obligation consultation with one of your pre-selected financial advisors today.
We rely only on verified sources and credible third-party reports. For more details, see ourEthics and editorial guidelines..
United States Trade Representative (1); Tax Foundation (2); @RayDalio(3); CNBC (4), (5); Larger pockets (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
