‘Worse than a recession’: Billionaire investor Ray Dalio sounds alarm on Trump’s economic agenda

Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead

How can you prepare your finances?

If you’re an average American, how can you heed Dalio’s warning? Start by establishing an emergency fund (if you don’t already have one) that will cover at least three to six months of expenses — perhaps more, if you’re in a job that could be impacted by tariffs and trade wars.

Pay down high-interest debt (like credit cards) and avoid building up more debt if possible.

It may also be a good time to diversify your investments across different asset classes to mitigate risk. That might mean adjusting your mix of stocks, bonds and other assets.

If you’re close to retirement, you might want to shift to lower-risk assets, like dividend-paying stocks. Alternative investments, such as gold and real estate, are often considered a hedge against inflation and recession.

Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.

If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce the tariff impact on your nest egg, download their free 2025 gold investor bundle.

If you’re an accredited investor, Homeshares allows you to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.

The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments.

This approach provides an effective, hands-off way to invest in high-quality residential properties, plus the added benefit of diversification across various regional markets — with a minimum investment of $25,000.

With risk-adjusted target returns ranging from 12% to 18%, Homeshares could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership.

If you’re new to hedging — a risk management strategy that can help offset losses by purchasing investments in an opposite position to an existing investment — you may want to consult with a financial advisor to see how this could help mitigate risk in your portfolio.

Advisor.com can help you find someone that’s right for you.

Advisor.com is an online platform that connects you with vetted financial advisors. Just answer a few quick questions about yourself and your finances and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your homeownership or retirement goals.

You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

Depending on whether you’re close to retirement or not, you may want to adjust your retirement strategy — and adjust your risk tolerance to match that strategy. If you’re a young investor, you still have time for the market to recover, so avoid panic selling.