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As the market weighs how to navigate the uncertainty of unknown economic impacts of the Trump administration's tariff and immigration policies, BlackRock Americas chief investment and portfolio strategist Gargi Chaudhuri joins Morning Brief with Seana Smith and Brad Smith to share three tips she's been telling clients.
"Over the last three weeks or so, even before the sell-off on Monday, clients have been asking us around how they should be thinking about hedges, as well as diversifiers away from the large-cap tech names," Chaudhuri says.
"Number one: continuing to focus on the expansion of other areas of earnings growth," she explains. "Whether that means remaining very active and nimble with dynamic factor rotation strategies or whether that means moving toward areas of large-cap value, that's one of the things that investors can do."
Secondly, she says, "One of the ways in which investors can especially hedge their portfolios in a rising inflation environment and a rising geopolitical risk environment is [to] perhaps think about inflation-linked bonds, especially in the front end of the curve, as well as ... considering an allocation to gold (GC=F) as well as bitcoin (BTC-USD)," Chaudhuri says.
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Lastly, the strategist says that "especially when tariff risks are concerned," investors should be "focusing on companies, especially tech companies that have some energy — some tech independence associated with them."
Watch the video above to learn more about Chaudhuri's recommendations for gold and crypto allocations in your portfolio.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.