Rising Unrest, Rising Opportunities: How to Protect Your Portfolio in America's New Reality

The streets of Los Angeles are burning. Marines and National Guard troops patrol city centers. Protests against immigration raids have spiraled into a national crisis, and the U.S. political risk index is hitting record highs. This isn't 2020—it's June 2025, and the era of permanent volatility has arrived. But here's the twist: this chaos isn't just a threat—it's an investor's roadmap. Let's dissect the sectors turning turbulence into treasure.

1. Gold: The Ultimate Hedge Against Chaos

The data is screaming: political instability = gold's best friend. Since the November 2024 elections, the GeoQuant political risk index for the U.S. has surged—and so has gold. The correlation? A staggering 0.84, meaning gold prices have moved in lockstep with rising civil unrest and geopolitical tensions.

Here's why this isn't a flash in the pan:
- Civil unrest is now structural, not cyclical. The 80,000+ protest incidents globally in 2024 (per Allianz) are a new baseline.
- Military overreach (like Trump's National Guard deployment in LA) is fueling distrust in governance.
- Investors are fleeing “exceptionalism”: The U.S. dollar's 8% drop since late 2024 signals a loss of faith in traditional safe havens.

Action: Load up on gold ETFs like GLD or miners like GOLD. For the bold, consider SIVR, the silver ETF—its industrial uses in tech add a dual defensive/growth angle.

2. Cybersecurity: When Chaos Meets Data

The protests are physical, but the real war is digital. As far-right groups and hacktivists exploit unrest, cyber defenses are the new Maginot Line.

The G7's focus on AI governance and maritime security isn't just about geopolitics—it's a warning. Critical infrastructure (from power grids to supply chains) is a prime target. Companies like Palo Alto Networks (PANW) and CrowdStrike (CRWD) are the first line of defense.

Why now?
- Regulatory tailwinds: The EU's REPowerEU plan and U.S. infrastructure bills are pouring money into cybersecurity.
- The “threat multiplier”: Every protest creates chaos, which creates cyberattack opportunities.

Action: Buy the dips in cybersecurity leaders. For diversification, consider CYSR, the cybersecurity ETF.

3. Utilities: Stability in a Storm

While politicians battle, utilities keep the lights on—and that's non-negotiable.

The research shows U.S. LNG exports to Europe are soaring, and utilities with stable energy portfolios (like renewables and natural gas) are insulated from geopolitical whiplash. The XLU utility ETF has outperformed the S&P 500 by 12% in the past year, and dividends are rock-solid.

The hidden gem: NextEra Energy (NEE). Its wind and solar projects are recession-proof, and its partnerships with European LNG buyers make it a cross-border stability play.

Action: Rebalance 10-15% of your portfolio to utilities. Pair with dividend-rich names like DUK (Duke Energy).

The Bottom Line: Rebalance or Regret

This isn't about panic—it's about pragmatism. The data is clear: defensive sectors are the only game in town when civil unrest and geopolitical brinkmanship are the new normal.

• Short-term volatility? Yes. But gold, cybersecurity, and utilities are your anchors.
• Long-term shifts? Absolutely. The world is moving from “American exceptionalism” to “American exceptionalism risk”—and only the prepared profit.

Final Call: Sell 20% of your tech/growth stocks and plow the cash into this trio. The streets may be burning, but your portfolio can stay cool.

Remember: In a storm, you don't need a sailboat—you need an anchor.