As I watch my stock portfolio correct, I take solace in knowing that my real estate portfolio<\/a> continues to chug along despite the chaos, fear, and uncertainty.<\/p>\n With mass government personnel cuts, new tariffs against Mexico, Canada, and China, a heated Oval Office exchange between President Trump and Ukraine\u2019s President Zelensky, and sharp words from VP Vance about European leaders, economic uncertainty is surging. While the stock market despises uncertainty, real estate investors might find opportunity in the turmoil.<\/p>\n <\/p>\n In 2023, Canada sent 76% of its exports to the United States, accounting for 19% of its GDP. In 2024, Mexico sent 78% of its exports to the U.S., making up 38% of its GDP. Meanwhile, U.S. exports to both Canada and Mexico combined account for only about 2.7% of U.S. GDP. Clearly, Canada and Mexico will need to make concessions\u2014otherwise, their economies will likely slip into recession.<\/p>\n I expect swift negotiations among these four countries, which is why I\u2019m buying the stock market dip<\/em>. In a way, I’m thrilled to be able to build greater equity positions for my children, who have small stock market portfolios. The idea of making children millionaires<\/a> before they leave home may be a growing necessity. At the same time, I see real estate as both a hedge against uncertainty and a potential outperformer this year and next.<\/p>\n When uncertainty spikes, equity markets typically sell off. Since stocks produce nothing tangible, their value relies on investor confidence and the ability to forecast their future earnings. But investors fear the unknown\u2014much like stepping into an already stinky elevator, only to have someone else walk in and assume you\u2019re the culprit.<\/p>\n However, real estate thrives in times of uncertainty. Why? Because capital seeks safety and tangible assets. When stocks tumble, investors flock to Treasury bonds and hard assets like real estate and gold, which tend to hold their value better. While equities can lose 10%+ in market cap overnight, real estate remains a tangible, income-generating asset that provides utility. <\/p>\n I previously wrote about how trade wars could reignite the housing market<\/a>. That prediction appears to be playing out now. With interest rates inching lower, the demand for real estate is increasing. You could easily see an enormous shift of capital from stocks to real estate this year. <\/p>\n To get a clearer picture of the situation in Washington, D.C., I reached out to Ben Miller, co-founder and CEO of Fundrise<\/a><\/strong>, who is based in Washington D.C.. His insights were eye-opening, including the discussion of taking away, \u201cstealth stimulus.\u201d You can listen to the episode by clicking the embedded player below or going to my Apple<\/a> or Spotify<\/a> channel.<\/p>\nThe Start of Trade Wars<\/strong> In March 2025<\/h2>\n
![\"Mexico,](\"https:\/\/i2.wp.com\/financialsamurai.com\/wp-content\/uploads\/2025\/03\/IMG_9790.jpg\")
<\/figure>\nHow Political and Economic Chaos Impacts Investments<\/h2>\n
The Impact of DOGE Cuts & Economic Uncertainty<\/h2>\n