Welcome to the New Economic World Order: What Now for Your Money?
Here are a few of the contributing factors to this new order and what you can do with your money to adjust to the uncertainty.
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Now that “Liberation Day”—the week when blatant market manipulation was on full display—is in the rearview, we find ourselves a month later with no real trade deals on the table, and after only 2 weeks of calling China’s bluff, trump has caved and is now saying a great deal will be made (lol). He has also backtracked on trying to remove Powell from the job, either by effect of someone with an ounce of common sense or the blood on Wall Street.
Another week, another case of whiplash.
Even though the markets have responded favorably today, the dust hasn’t settled; it’s just beginning to stir. And what’s becoming increasingly clear is that we’re not just experiencing a rough patch—we’re entering a new economic world order.
The End of an Empire?
The current environment we’re moving into (let’s be honest, we’re already here) is an intersection of aggressive trade policies, challenges to central bank independence, and general political uncertainty, and it’s creating a complex and potentially volatile economic environment. We should all be carefully monitoring and strategically planning to navigate this evolving landscape.
This shift which centers around chaos and undermining Democratic norms could echo the darkest moments of the 20th century: the 1930s, marked by mass contraction, widespread bank failures, and collapsing industries.
In addition to the Federal Reserve System, one of the main buffers we have is the FDIC, which—despite current fears about its intentional weakening—remains a critical defense against a catastrophic run on the banks. But its strength depends on continued public faith.
If this feels alarmist to you, then you may be living in a hole or at the very least a fog of fox news.
And I’ve got news for those who find relief in a one-day rebound: American financial markets are sounding all sorts of alarm bells that one day in the green can hardly overcome.
Trump’s trade war is making America an unsafe place to invest, and those who are willing to admit this NOW may be the only ones who still have time to adjust in time.
And it’s not just the trade war itself that has global investors scared. If he had come out and calmly explained he wanted to raise money with a 10% global tariff and said “that’s my starting point,” the markets could have easily digested that information and rallied.
But the method in which this tariff fiasco has been implemented is what is creating our potentially irreversible weakness.
Chaos, incompetency and inconsistency are three things the markets HATE, and trump is all of those things in everything he does.
From a Wall Street perspective, you want to feel like your policy makers have a basic grasp of economics, and to tell a country, especially an extremely poor country, that they’re ripping us off because of a trade deficit is existentially…well…idiotic. It’s not 4D chess, and the world sees straight through MAGA incompetency.
No one wants trump to be in charge of monetary policy, especially when his economic illiteracy is on full display. So let’s hope his statement yesterday, “I have no intention of firing him” sticks. But as with everything trump says, there’s no hiding his real intentions.
Tariffs are Catalyst to Eroding Trust and Global Tremors
As today’s green tickers showed, the market is itching for trade deals. Eventually, some will come. But expecting those deals to be the cure is dangerously naïve.
Tariffs are not just policy tools—they are weapons of manipulation. They can (and will) cause severe inflation. More importantly, they distract from a broader dismantling of foundational systems and relationships—structures that took a century to build. (DOGE, the alienation of our allies, interference with the DOJ, undermining electoral legitimacy, etc. are just a few of the most visible signs of this erosion.)
Globally, trust in the U.S. is eroding. Nations are pulling back on U.S. Treasuries. This has cascading effects: interest rates may rise, the dollar could weaken, corporate earnings might decline, and market instability could intensify.
Make no mistake: this is a man-made, self-inflicted economic wound.
Let’s also not forget that we are only 100 days in, and the tariff situation is likely to be the first in a series of follies and market manipulation. I don’t think anything thinks that trump will come out of this thinking he ought to be more careful and strategic on the next big policy situation.
Manipulating the Fed: A Dangerous Game of Economics
Let’s talk about the threat of trump’s desire to fire Fed Chair Jerome Powell. No doubt he will circle back to this when he needs another distraction. Ultimately, he wants to force interest rates lower when his tariffs inevitably cause even more inflation. His reasoning? Lower rates equal more spending and a stronger short-term economy. But this isn't Econ 101—it’s a reckless simplification with long-term consequences.
Lowering interest rates in a fragile economy only accelerates inflation. And if the market and economic fundamentals can’t keep pace, we face stagflation—a toxic mix of high inflation, stagnant wages, and rising unemployment. Sound familiar? That’s one of the leading indicators of a depression. That’s right, we could breeze right past a run-of-the-mill recession and head straight into a depression.
Even without the Fed raising or lowering interest rates, stagflation is on the table. Not to be a Debbie Downer, but everything negative is on the table with this regime. So, let’s hope we can keep the tampering with of the Fed off the table, at least for now.
Financial Advice Industry and Politics: The Dangerous Disconnect
The financial industry and its media arm are fundamentally unprepared for this moment. Why? Because they cling to the illusion that markets are politically agnostic.
For decades, they’ve touted charts and theories claiming the market’s independence from whoever occupies the White House—heck, I’ve personally used these charts in the past.
The people, however, have always loved to credit or blame the economy on the president, and so the charts were a source of sound wisdom: no matter how big the crisis or how much anyone thought the end was near (a moment of silence for the raging, Boomer fear-mongering during the Obama years), the markets always rebound.
But here’s the thing: never in our lifetimes has a president been so singularly responsible and hell-bound for screwing up the economy so obviously and so quickly—and, alas, the charts (which typically don’t begin until the 40s, post-Great Depression BTW) cannot defend this stance.
The truth is this moment in time is not normal. And by refusing to acknowledge how deeply entangled politics and finance have become, they can't begin to model the road ahead.
The mainstream strategy? Your conservative male, pale & stale advisor? All you will hear is “Keep calm and carry on. Stay the course. This too shall pass.” They dismiss this as another bout of volatility.
But for those who see the writing on the wall, this passive advice feels less like reassurance and more like gaslighting. They’re missing the moment.
So if you’ve been questioning the traditional narrative—if it’s all starting to feel unhinged—know this: You’re not alone. You’re not crazy. You’re right to be skeptical. There are actions you can take. And there are people paying attention.
Is It Really The End Of An Era? The Case Against Selling It All
With all of this said, don’t be surprised if Trump suddenly pulls back, declares victory, and claims success on the tariffs. (I wrote this yesterday, on 4/22 during the day, and yesterday evening the news spread that he was going to negotiate with China—so this point has already been proven.)
The stock market may momentarily rise. After each mess he creates, he’ll try something to make the markets correct, so we must also plan for these short-term rebounds.
Pro Tip: Consider thinking about having a chip on every square in this game of American Roulette.
There is a certain level of inertia in the stock market system still. Yes, there is a new risk premium in buying American stocks and bonds, but what if this, in hindsight, is just a readjustment and overreaction—a watershed moment, perhaps—and once it finds a bottom, a bull market is born and takes us to new heights?
While I’m not betting on it, that can still be one positive scenario amongst a string of a dozen negative ones.
These are the days that make investing feel like gambling. I would argue that this feels more like a hostage situation than a turn at the casino, though.
What You Can Do Right Now?
So how should you navigate this chaos? None of the below should be taken as direct investment advice. If customized advice is what you seek, consider booking a complimentary Discovery Call to see if you would be a good fit for ongoing financial planning with us.
1. Strengthen Your Cash Position
If your Emergency Fund feels too lean, now is the time to build it. Cut unnecessary expenses, boost income where possible, and prioritize liquidity. The goal should be 3-6 months’ worth of living expenses, but more if possible in times like these. Keep your savings beyond monthly expenses in a high yield savings account. Here’s my guide (which includes my #1 recommendation) for all things HYSA.
2. Reevaluate Your Investment Strategy
Potentially consider taking “some chips off the table”—i.e., sell part of your portfolio—but be mindful of tax implications. Don’t rush. Think through your entry and exit strategy carefully. There may or may not be an opportunity to time the market with these seemingly endless fluctuations. Make sure your cash is earning a high yield in a money market or HYSA. You can also look at foreign stocks if you want to diversify away from American investments.
3. Diversify Beyond Stocks & Bonds
Look at uncorrelated assets like gold, precious metals, and potentially certain commodities. These could provide a buffer if traditional markets continue to falter. Gold is surging again this week, $3,500 an ounce, hitting yet another record. Gold has skyrocketed nearly 25% during Trump’s new term, absolutely crushing the previous record of 13.5% during former President Jimmy Carter’s start to his term in 1977. No other president in the early days of their administrations has come close to matching this recent gold boom, and there’s no other explanation other than the sheer volume of fear & uncertainty we face.
4. Want off the rollercoaster? Stay Cautious and Create a Plan
Think very long and strategically if you’re leaning towards selling it all, because short-term surges are still possible, and being completely out could potentially cost you, too.
Also consider this: the decision to sell is sometimes easier than deciding and feeling confident to buy back in. Timing the bottom is a fool’s errand for most.
If you really want off the trump market ride, start thinking about what percentage you want to move to cash. Ask yourself how much you’ll wish you had sold if markets continue to fall in the intermediate term and how much you’ll wish you had NOT sold if markets rally after some chaos potentially dies down.
Don’t make this decision in the moment; don’t wait for the intense surge of fear to course through your body. Decide in advance, so you feel more calm when the turbulence arrives.
This isn’t a drill, and it’s not business as usual. The financial landscape is changing rapidly and dramatically. Those who remain flexible, informed, and prepared will be best positioned to weather what’s ahead.
Stay sharp. Stay skeptical. Stay diligent.
P.S. If you’re wanting to hear a 3D version of this post from myself and Dustin Granger (together, we are the co-owners of Generation Wealth) then click here to get on our waitlist for our upcoming workshop: Welcome to the New Economic World Order: What Now for Your Money?
Disclosure: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Thank you for being a voice of reason right now when it comes to investing and politics. As I was reading through your post I kept thinking “yes, this…finally someone who knows this stuff isn’t saying “business as usual, here’s what always happens in the markets.”
Thank you for this helpful perspective.