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U.S. Defense Secretary Pete Hegseth has issued a stark warning to America’s allies in Asia.
Speaking at the IISS Shangri-La Dialogue in Singapore — an annual security summit attended by ministers, military officials and business leaders — Hegseth identified China as a growing military threat to the region.
“There’s no reason to sugarcoat it. The threat China poses is real, and it could be imminent,” he said in his first address at the forum.
Hegseth focused his warning on Beijing’s stance toward Taiwan, making the stakes clear for the broader region.
“To be clear: any attempt by Communist China to conquer Taiwan by force would result in devastating consequences for the Indo-Pacific and the world,” he said.
He added that Beijing is “credibly preparing to potentially use military force to alter the balance of power in the Indo-Pacific.”
While Hegseth emphasized that the U.S. is not seeking conflict — noting President Donald Trump’s “immense respect” for the Chinese people and their civilization — he made it clear that Washington’s resolve is unwavering.
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“We will not be pushed out of this critical region, and we will not let our allies and partners be subordinated and intimidated,” he said.
Hegseth also called on America’s allies to step up their own military readiness, saying: “U.S. allies in the Indo-Pacific can and should quickly upgrade their own defenses.”
In response, China’s representative at the summit accused Hegseth of making “groundless accusations.”
“Some of the claims are completely fabricated, some distort facts and some are cases of a thief crying ‘stop thief,’” said Rear Admiral Hu Gangfeng, vice president of China’s National Defense University. “These actions are nothing more than attempts to provoke trouble, incite division and stir up confrontation to destabilize the Asia-Pacific region.”
While Hegseth’s warning focuses on geopolitical security, tensions between major powers of the world can also carry serious financial implications. Markets tend to react swiftly to military escalations or diplomatic shocks — and investors who aren’t prepared could be left exposed.
Here’s a look at three ways to help shield your finances amid rising global uncertainty.
A timeless safe haven
In times of uncertainty, few assets shine like gold — and investors are taking notice.
Unlike fiat currencies, gold can’t be printed at will by central banks. It’s not tied to any one government or economy, making it a powerful hedge against inflation, geopolitical instability and financial system shocks. That’s why during periods of turmoil — from wars to rising deficits — investors often flock to the yellow metal, pushing prices higher.
Lately, gold has lived up to its reputation. Over the past 12 months, the price of the precious metal has surged by more than 40%.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, recently highlighted gold’s importance as part of a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” he told CNBC in February. “When bad times come, gold is a very effective diversifier.”
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in silver for free.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
The 1 sector that thrives in conflict
Hegseth has called on America’s Indo-Pacific allies to ramp up their military spending — a move that aligns with the U.S.’s own aggressive defense budget.
According to the Stockholm International Peace Research Institute, the U.S. spent $997 billion on defense in 2024 — more than the next nine countries combined, including China.
Periods of heightened geopolitical tension often coincide with increased military spending. For defense contractors, that can mean a surge in business — and for investors, it presents a potential opportunity.
Defense stocks tend to gain attention when global risks rise. Companies like Lockheed Martin (NYSE:LMT), RTX (NYSE:RTX) and Northrop Grumman (NYSE:NOC) are among the biggest players in the industry.
For broader exposure, investors can also consider ETFs like the iShares U.S. Aerospace & Defense ETF (BATS:ITA), which provides diversified exposure to the sector.
Passive income, even in uncertain times
Like stocks, real estate prices can fluctuate. But unlike many other assets, real estate doesn’t rely on a booming market to deliver returns.
High-quality, income-generating properties — especially those serving essential needs — can continue to produce rental income, even during times of economic or geopolitical uncertainty. That means you don’t have to rely on price appreciation to see a payoff — the asset itself can work for you.
Even the current U.S. commander in chief has long recognized the value of real estate.
In a 2011 interview with Steve Forbes, Trump said, “I just notice that when you have that right piece of property, whatever it might be, including location, it tends to work well in good times and in bad times.”
Homeshares gives accredited investors access to the $35 trillion U.S. home equity market — a space that’s historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can 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.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
If you’re an accredited investor looking for larger returns through commercial real estate, First National Realty Partners (FNRP) could be a better fit with a $50,000 minimum investment requirement.
Specializing in grocery-anchored retail, FNRP offers a turnkey solution for investors, allowing them to passively earn distribution income while benefiting from the firm’s expertise and deal leadership.
FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market. And since the investments are necessity-based, they tend to perform well during times of economic volatility and act as a hedge against inflation.
You can engage with experts, explore available deals and easily make an allocation, all in one personalized, secure portal.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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