By Andrew Shilling
April 14, 2025
Excerpt from article:
Last week, amid President Trump’s major tariff moves, investors looked on as markets endured huge swings. Now, with Chinese imports facing tariffs of 145%, and an uptick in overall volatility, it’s likely that some investors are in search of financial safety. Does that mean they should look to traditional so-called safe-haven assets, or consider making portfolio changes?
We consulted with investment experts for their takes on the best safe-haven assets right now and whether investors should take heed. While some of the following suggested strategies can be accomplished on your own, the more complex tips will likely require the support of a money manager or financial adviser.
Farmland and auto-repair, says Omnigence Asset Management Director Stephen Johnston
Johnston says investors “should expect more stagflationary conditions” — which is the combination of high inflation and stagnant economic growth or high unemployment.
If that’s the case, “farmland is an example of an asset class that flourishes in stagflation,” he says of industries investors should consider adding to their investment portfolios, adding that “during the 1970s, U.S. /Canadian farmland increased 300% in nominal terms.”
Another investment area are companies that come under pressure when the middle class purchasing power tightens, Johnston adds. “An example is auto maintenance,” he says, explaining that “in stagflationary conditions, the average age of a car on the road increases materially and as cars age they consume much larger amounts of maintenance services. Auto maintenance therefore, tends to grow much faster than nominal GDP in a stagflationary macro climate.”
Original article here