President Donald Trump has drawn comparisons to President William McKinley, particularly regarding trade policies. One key reason for this is McKinley’s role in enacting the Dingley Tariff of 1897, the highest tariff in American history. Trump, a vocal proponent of protectionism, has reiterated his desire to reintroduce tariffs as a core economic strategy. His evocation of McKinley reflects a historical precedent for using tariffs to reshape the economic landscape.
McKinley’s immediate predecessor, President Grover Cleveland, offers another striking parallel to Trump. Cleveland—until Trump, the only U.S. president to serve two non-consecutive terms—returned to office in 1893 only to face the Panic of 1893 within his first 100 days. That financial crisis brought widespread bank failures, unemployment, and market chaos. Investors fled to gold as a safe haven, a move that has echoed through many periods of uncertainty.
Following Trump’s recent “Liberation Day” announcement—a sweeping economic policy rollout that includes a renewed push for aggressive tariffs—the markets responded with initial volatility. Equities dipped, Bitcoin dropped sharply, and interestingly, gold did not see the boost one might have expected in times of uncertainty. That’s left many investors asking: where is the safe haven today?
It’s a fair question. While assets like gold have historically provided a hedge, recent market behavior reminds us that even traditional refuges can behave unpredictably. For those seeking stability, conservative vehicles such as CDs, U.S. Treasuries, and high-quality bonds continue to offer potentially reliable income and preservation of capital, especially when balanced thoughtfully within a diversified portfolio.
But the bigger story here is not about doom—it's about perspective.
History reminds us that the U.S. economy has weathered far more severe storms and emerged stronger. The challenges of the 1890s ultimately gave way to massive industrial growth, technological innovation, and a rising middle class. The Dingley Tariff, despite its intention to protect American industries, raised the cost of living by nearly 25%—a painful side effect that was only mitigated by new economic developments like the Alaska Gold Rush.
And while a literal gold rush may not be in our future, modern investors aren’t without tools. At CBK Wealth, we focus on guiding clients through change—not around it—with strategies that aim for long-term strength and stability.
In the spirit of levity—and a nod to history—recall that L. Frank Baum’s The Wonderful Wizard of Oz was written as a political allegory for this very era. Dorothy’s silver slippers gliding down the Yellow Brick Road symbolized the journey between monetary systems. Just like Dorothy, investors today may feel swept up in a whirlwind—but the road ahead, while winding, still leads to home.
The views stated in this material are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein.
Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.
Past performance does not guarantee future results. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.