Tariff Storm, Trump’s Turbulent Era, and the AI Wave: Three Experts Teach You How to Restructure Your Investment and Retirement Strategies

With tariff policies back in the spotlight, the strong return of the maniac Trump, and artificial intelligence rapidly disrupting industries, many people are starting to wonder: "Should I change my investment portfolio? Should I even adjust my career and retirement plans?" Bloomberg interviewed three financial experts who provided the most pragmatic advice for different age groups and stages of asset planning.

interviewee

Kyla Scanlon: Author of "In This Economy?", focusing on financial education for young people, runs a personal newsletter.

Christine Benz: Director of Personal Finance and Retirement Planning at Morningstar Inc., author of "How to Retire: 20 Lessons on Happiness, Success, and Wealth."

William Bernstein: neurologist and investment advisor, author of "The Four Pillars of Investing" and "How Trade Shaped the World."

Young people under investment anxiety: from diverse skills to rational risk diversification

Kyla Scanlon pointed out that this generation of young people has lower confidence in the economy. From the impact of the pandemic to high inflation, rising housing prices, and unstable careers, she suggests that young investors should avoid a single career development path, strengthen and diversify their skills, especially in AI and economic analysis, to be well-prepared for future changes in circumstances.

She also revealed that the investment behavior of Generation Z often fluctuates between "safety seekers" and "digital gamblers"; some take excessive risks by investing in meme stocks (GameStop) or cryptocurrencies, while others completely avoid the market. In this regard, she emphasized: "Generation Z should ensure financial stability before starting to invest."

Asset diversification is fundamental to risk management, including allocations in utilities or growth-oriented tech stocks, and emphasizing the power of "compound interest."

Asset allocation for middle-aged and retired individuals: prudent global diversification, focusing on inflation defense.

Christine Benz suggests that middle-aged individuals between the ages of 30 and 40 should differentiate between short-term and long-term goals, take advantage of long investment periods, and "embrace the market volatility" that presents entry opportunities; meanwhile, those over 50 who are nearing retirement should establish a low-risk asset pool for 7 to 10 years, reduce exposure to high-volatility positions, and hold sufficient cash or bonds to cope with market fluctuations.

She particularly emphasized the current global trend of "de-globalization" and trade barriers, which have caused more differences in global market performance. Investors should increase their allocation to "non-US markets." In the face of inflation risks, she also recommends including inflation-protected bonds ( such as TIPS or I Series Savings Bonds ) and Bond Ladder ( to preserve purchasing power.

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Don't chase political trends in investments: focusing on cash flow and patience is the key.

William Bernstein reminds us not to base investment decisions on policy or political news, as market reactions are almost completely unpredictable. He cites the example of Trump’s election night, where the market first plummeted and then rebounded, proving that policy variables cannot predict short-term market trends.

He suggests that people measure their "cash consumption rate )burn rate(", which is the proportion of funds withdrawn from the investment portfolio each year:

For investors with a low burn rate ) such as 2%(, the financial risk is low; However, if the burn rate is as high as 4%, it needs to be carefully allocated to avoid over-reliance on the stock market.

At the same time, even though he views the human capital of young people as a stable asset suitable for adopting a more aggressive investment strategy, he remains pessimistic about the future market, believing that investors should establish an emergency fund and be mentally prepared for the possibility of unemployment in the next 6 to 8 months.

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Tariffs and AI: Two Major Forces in Long-Term Economic Restructuring

Three experts pointed out that the tariff policy proposed by Trump could raise inflation and disrupt global supply chains, which would be detrimental to the economy in the long run. Bernstein even warned: "The tariff policy of 1930 did not directly trigger the Great Depression, but it indirectly contributed to World War II."

On the other hand, the three also unanimously agreed that AI is a highlight industry for investment and careers in recent years, especially with high potential for returns during the early growth phase. However, Bernstein believes this will not destroy the job market:

Looking back at history, the past fear of technological unemployment ) bank clerks or switchboard operators ( did indeed lead to direct job losses, but it also created many new opportunities. Young people should maintain their learning ability and flexibility, and not panic about the future where AI may replace human jobs.

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Expert consensus: Stability and resilience are key to weathering the storm.

Faced with multiple challenges of tariffs, AI, and geopolitics, three experts unanimously emphasized: "Young people should focus on skill enhancement and long-term investments; middle-aged and older individuals must balance risk management and global asset allocation; retirees should concentrate on cash flow and hedging."

It is well known that diversification in investment, multi-skills, and anti-inflation assets are the invincible principles to navigate the giant waves of tariffs, technology, and policies. This wave of economic transformation may not necessarily be a risk; it can also be an opportunity, as long as you are well prepared.

This article on tariff storms, Trump's chaotic era, and the AI wave: three experts teach you how to reorganize your investment and retirement strategies first appeared in Chain News ABMedia.