The early months of President Donald Trump’s second term have delivered a harsh reminder to investors: depending solely on U.S. stocks to grow your retirement portfolio is a dangerous game. While the stock market struggles to find its footing, alternative assets and international investments have outperformed, highlighting the critical importance of diversification.

President Donald Trump’s return to the White House reignited global market volatility. Though the stock market had gained ground late last year, those gains have been wiped out. His aggressive tariff policies, renewed geopolitical tensions, and regulatory surprises have weighed heavily on U.S. equities. The S&P 500 is down nearly 8% since his inauguration in January, erasing postelection optimism and shaking confidence in portfolios heavily weighted in domestic stocks.

Diversified Assets Are Outperforming U.S. Stocks

Investors who spread their risk outside U.S. borders have been rewarded. Gold has risen 25% since Trump’s second inauguration, and silver has gained 13%. The Swiss franc and Japanese yen are both up against the dollar, gaining 11% and 9%, respectively. Even the Mexican peso, often vulnerable to U.S. political shifts, has climbed nearly 7%.

Global equities are also outpacing the U.S. market. The iShares Core MSCI EAFE Index, which tracks stocks in Europe, Australasia, and the Far East, has returned 13% over the same period. These numbers show that investors who diversified beyond U.S. assets avoided significant losses and captured growth elsewhere.

Too many Americans continue to hold retirement portfolios that rely almost entirely on U.S. equities. That overexposure means they absorb the full shock when Washington policy sends the domestic market into a tailspin.

Why Overconcentration Hurts Your Retirement Portfolio

Stocks are a critical part of most long-term investment strategies. But concentrating too much of your retirement savings in a single country’s equity market introduces unnecessary risk. Political leadership, policy instability, and domestic economic fluctuations can all have outsized effects on returns when a portfolio lacks global exposure.

Diversification in your retirement portfolio helps limit damage in volatile markets. Safe-haven assets and foreign markets can rise when U.S. stocks fall, smoothing out performance and helping investors stay the course. This balance is especially important for retirement savers who don’t have decades left to recover from a major downturn.

Emotional decision-making also becomes more common with overconcentrated portfolios. Sharp losses can push investors to sell at the wrong time, locking in declines. A properly diversified mix in your retirement portfolio reduces those swings and gives investors fewer reasons to panic.

How to Strengthen Your Retirement Portfolio Now

Start by checking the percentage of your retirement portfolio allocated to U.S. stocks. If it’s more than 70%, it may be time to rebalance. Consider international equities, which can track global growth more broadly, and precious metals, which often hold or gain value in uncertain economic conditions. Foreign currencies like the Swiss franc and Japanese yen can also offer a buffer when the dollar weakens. Some retirement accounts offer access to these through exchange-traded funds or currency-focused mutual funds.

Rebalancing doesn’t require abandoning U.S. markets. But it does mean taking steps to ensure your savings aren’t vulnerable to just one region’s politics or policies. A globally diversified portfolio is better equipped to handle the uncertainty of any administration.

Investors should treat the current volatility as a reminder, not a crisis. Retirement portfolios built with discipline, global exposure, and diversified assets are better positioned to endure political shocks without permanent setbacks. Staying flexible, patient, and focused on fundamentals remains the best strategy, no matter who occupies the White House.

Have you diversified your retirement portfolio enough to withstand another year of market shocks? Tell us what you did to survive today’s market conditions.

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