#SAFEFROMTARIFF
How to Protect Your Portfolio from Tariff Risk
1. Diversify Across Sectors
• Don’t overexpose yourself to one industry (e.g., industrials or tech).
• Balance with defensive sectors like healthcare, utilities, or consumer staples.
2. Invest in Domestic-Focused Companies
• Look for businesses with limited exposure to international trade.
• Example: Local service providers, regional banks, or U.S.-based retailers.
3. Use ETFs or Mutual Funds
• Broader exposure through index funds can reduce the risk from individual company tariff exposure.
4. Consider Hedging Strategies
• Use options or inverse ETFs to protect against short-term drops if trade tensions escalate.
5. Focus on Strong Fundamentals
• Companies with healthy balance sheets, pricing power, and loyal customer bases are better positioned to weather cost increases.
6. Hold Cash or Safe-Haven Assets
• Keeping a portion in cash, gold, or U.S. Treasuries can buffer against sudden drops.