A new reality is dawning for global financial markets, with concerns growing exponentially. Many investors are bracing for turbulence as President-elect Donald Trump prepares to impose massive tariffs on imported goods.  

Trump's first action as president-elect was the creation of the Department of Government Efficiency (DOGE). According to Nigel Green, CEO of deVere Group, this move will have "significant consequences" for global trade and government spending. Green has issued a stark warning about the potential volatility these changes could unleash.

The Republican's proposed tariffs include an additional 10% on Chinese goods and 25% on imports from Canada and Mexico. While these measures are intended to combat illegal immigration and drug trafficking, their effectiveness remains questionable. Many experts believe that these tariffs could disrupt global trade. Preliminary estimates suggest that industries reliant on international supply chains and exports, such as automobiles, technology, and agriculture, will face increased volatility.

As for the current DOGE initiatives, they aim to reduce federal spending by $500 billion. According to Green, this will have a dramatic impact on sectors dependent on government contracts, including pharmaceuticals and defense. The IT sector could also be affected by cuts in federal funding.

The expert has also urged investors to reassess their portfolios in light of these upcoming changes. He believes that the tariffs could raise business costs, boost inflation, and be the first step toward more aggressive monetary policy. The prospect of a trade war is adding to market uncertainty, causing investors to rethink their positions. This is particularly relevant right now, Green points out.

He further notes that currency markets could experience intense volatility. The dollar is also at risk, as it could be affected by tariffs and fiscal tightening. With this in mind, the expert stresses the importance of portfolio diversification to mitigate risks associated with Trump's new trade policies.

The CEO recommends that investors do not put all their eggs in one basket. He firmly believes that relative stability in the current market can be achieved through diversification and by increasing exposure to sectors that are less vulnerable to changes in government policy, such as technological innovation.

In conclusion, Green urges market participants to brace for surprises stemming from Trump's new trade policies and DOGE's initiatives. Despite the challenges ahead, he remains optimistic, encouraging everyone to seize new investment opportunities that may arise from market volatility.