logo
Father's Day Gift Guide 2025: 7 Standout Napa Valley Cabernets For The Collector Dad

Father's Day Gift Guide 2025: 7 Standout Napa Valley Cabernets For The Collector Dad

Forbes09-06-2025

Ridges of fir, oak and pine trees overlook the floor of Napa Valley as the morning fog rolls in.
getty
Not all Napa Cabernet Sauvignon is built the same. Prices are higher than ever, but after a sluggish year in the luxury wine market, clarity is setting in: the producers who prioritize site, structure, and longevity are the ones worth watching. These seven wineries consistently deliver Cabernet that holds up, both in the cellar and on the table. If you're shopping for a dad who loves Napa Cabernet, start here.
Ink Grade vineyard views with hot air balloons in the distance.
Ink Grade
While Ink Grade has not yet reached the status of a cult label, it is on its way. Founded in 2018 by Gaylon Lawrence (also behind Heitz Cellar), the estate farms steep, volcanic slopes on Howell Mountain using certified biodynamic practices. The wines are made by Master Sommelier turned winemaker Matt Taylor, and they're already earning serious attention from critics and collectors alike.
The 2019 Howell Mountain Cabernet shows the structure and lift this subregion is known for. Blueberry, pine, and wild herbs layer over black cherry and graphite. It's plush, polished, and bright on the finish — a wine that manages both power and poise. This magnum is built to impress, whether it's opened now or cellared for the long haul.
Wine to Find: 2019 Howell Mountain Cabernet Sauvignon Magnum, $450
Founded in 1882 and stewarded by the Novak family since the 1970s, Spottswoode is a benchmark Napa Valley estate on the western edge of St. Helena. The 45-acre vineyard has been certified organic and biodynamic and now also holds Regenerative Organic Certification — a rarity in Napa. Winemaker Aron Weinkauf, who joined in 2006 and now oversees both vineyard and cellar, crafts elegant, age-worthy Cabernets that reflect both place and precision.
The 2022 Estate Cabernet Sauvignon is a wine of energy and refinement. A warm, balanced growing season — punctuated by a short September heat spike — produced grapes with vibrant acidity and focused flavor. The wine opens with wild strawberry, marionberry, and violet, followed by layers of baking spice, cocoa, and a touch of salinity on the finish. It's still young but already showing its thoroughbred form — poised, expressive, and built to age.
Wine to Find: 2022 Estate Cabernet Sauvignon, $285
Peter Mondavi in the barrel room at Charles Krug.
Charles Krug
Established in 1861, Charles Krug is Napa Valley's oldest winery — and has been owned by the Mondavi family since 1943. Now in its fourth generation, the family continues to steward the estate with an increased focus on sustainable farming while preserving the heritage of the property and family history. Veteran winemaker Stacy Clark — who joined in 2011 after more than two decades at Pine Ridge — oversees production. She's joined by fourth-generation family member Angelina Mondavi, who contributes as a consulting winemaker and brings a modern lens to one of Napa's most historic cellars.
The 2021 Family Reserve Howell Mountain Cabernet Sauvignon is sourced from estate vineyards situated at 1,650 feet above the valley floor, a site that benefits from volcanic soils and a unique microclimate. On the nose, expect aromas of cigar, tobacco leaf, black tea, pomegranate, and black cherry, with hints of blueberry and blackberry pie. On the palate, it offers sweetened, ripe black fruits complemented by spice, pine, and dusty earth, supported by abundant, fine-grained tannins.
Wine to Find: 2021 Family Reserve Howell Mountain Cabernet Sauvignon, $180
The barrel room at Dunny Vineyards.
Dunn Vineyards
Randy and Lori Dunn founded Dunn Vineyards in 1978 after acquiring 14 acres on Howell Mountain, including a small parcel of mature Cabernet vines. At the time, Randy was working full-time as a winemaker in Rutherford and tended the vineyard on nights and weekends, eventually expanding the estate to include multiple neighboring parcels. By 1981, Dunn Vineyards was officially bonded, and its high-elevation site — ranging from 1,800 to over 2,000 feet — proved ideal for producing structured, age-worthy mountain Cabernet. Today, the estate encompasses roughly 42 acres of vines and is considered one of Napa's cult producers, known for its restrained style, longevity, and limited allocations that attract collectors seeking authenticity over flash.
Dunn's 2019 Howell Mountain Cabernet is powerful yet refined, with dark fruit, graphite, and violet aromas leading into a full-bodied palate of cassis, plum, and iron. Aged 32 months in new French oak and sealed in signature red wax, it's structured for decades of aging but already striking in its elegance.
Wine to Find: Dunn Howell Mountain Cabernet Sauvignon 2019, $210
Mary Lee's Vineyard at Grgich Hills.
Grgich Hills
Founded in 1977 by Miljenko 'Mike' Grgich, the man behind the 1973 Chateau Montelena Chardonnay that triumphed in the 1976 Judgment of Paris, Grgich Hills Estate remains an icon of Napa Valley winemaking. Today, the estate remains family-owned, with Mike's nephew, Ivo Jeramaz, overseeing both winemaking and vineyard operations.
While you might scoff at buying a 2013, Grgich wines are built to last and taste better with a few years of aging in the cellar. The estate 2013 Cabernet Sauvignon, sourced from organically and regeneratively farmed vineyards, offers a complex nose of dark black fruits, plum, and sandalwood, leading to a palate of firm but fine tannins and fresh acidity. This wine is drinking well now, but it has the structure to age further.
Wine to Find: 2013 Estate Grown Cabernet Sauvignon, $178
Cathy Corison founded Corison Winery in 1987, becoming one of Napa's first women winemakers, and the winery has since built a devoted following for her Cabernet Sauvignons that prize finesse over flash. The organically farmed estate vineyards, including the historic Kronos and Sunbasket, sit on gravelly benchland between Rutherford and St. Helena. Certified Napa Green and dry-farmed, these sites yield wines with bright acidity, moderate alcohol, and the kind of structure that rewards patience.
The 2019 Corison Napa Valley Cabernet bursts with aromas of violet, cassis, and crushed herbs, layered over a core of dark cherry and graphite. It's vibrant and precise, with silken tannins and a mineral finish that carries real lift. Aged in 50% new French oak, it's a Cabernet that hums with energy—drinkable now, but built to go the distance.
Wine to Find: 2019 Corison Cabernet Sauvignon, $145
The stone house and vineyards at Ehlers Estate.
Ehlers Estate
Ehlers Estate, just north of St. Helena, farms 42 acres of certified-organic Cabernet on soils originally planted in the late 1800s. Since 2023, winemaker Adam Casto has been steering the estate toward site-driven wines—moving beyond varietal labels to celebrate individual vineyard blocks, soil types, and slope aspects. With a background training under Philippe Melka, plus multi-regional harvest experience, Casto is integrating terroir into the naming and style of future releases, supporting the estate's plan to adapt varieties and blends to evolving climate and site conditions.
Though the 2021 '1886' Cabernet pre-dates Adam's tenure, it's delicious and deserves consideration. It's an inky, brooding wine with aromas of blackberry, cassis, hibiscus, and baking spice. On the palate, it's savory and structured—think steeped herbs, a touch of hoisin sweetness, and serious tannins carrying through a long finish. Aged 20 months in French oak, it offers both immediate appeal with a hearty steak and the concentration to age gracefully over the next decade.
Wine to Find: 2021 1886 Cabernet Sauvignon, $160

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

38 Best Early Amazon Prime Day Deals On Products We've Tested (2025)
38 Best Early Amazon Prime Day Deals On Products We've Tested (2025)

WIRED

time30 minutes ago

  • WIRED

38 Best Early Amazon Prime Day Deals On Products We've Tested (2025)

Amazon Prime Day 2025 is fast approaching, and the sale is already underway on some items. To help you find the best early Prime Day deals, we've scoured Amazon for deals on the tech we love. As always, every deal we recommend here is on a product our reviewers have personally tested and approved—you won't find any shoddy dupes or mystery brands here. This year Prime Day runs for four days, July 8-11, rather than the usual two. That means there's twice as long to suffer save. Twice as long to score a great deal on a new Amazon Fire Tablet, some AirPods, or a KitchenAid stand mixer. Be sure to read our explainer on all the Amazon Prime perks you should be taking advantage of. Updated Saturday June 28, 2025: We've removed a couple of sold-out deals and added new deals on HP's Chromebook x360, Surface laptops, a Samsung Watch Series 7 watch, Beats Solo 4 headphones, Sawyer Squeeze water filter, Garmin Inreach Mini 2, Petcube Cam 360, Blissy Silk Sleep Mask, and the Imilab C30 Dual Security Camera WIRED Featured Deals Amazon Device Deals Amazon's Eero Pro 6E (7/10, WIRED Recommends) is a tri-band mesh that adds the 6-GHz band to the familiar 2.4-GHz and 5-GHz bands. If you have a 1 Gbps or faster connection and lots of devices, this is a great mesh system for you. It performed extremely well in our tests, though the 6-Ghz band is short-range. This deal is for the Fire Max 11 (5/10, WIRED Review) bundle, with keyboard. The Fire Max 11 is Amazon's nicest Fire tablet, but if you're thinking of doing work, keep in mind that Google's various office apps won't work. If you don't need those, this is a serviceable tablet. The screen is bright and sharp enough, the speakers aren't bad, and the cameras are 1080p. Easily the best audiobook service, Amazon's Audible Premium Plus gives you access to a library of Audible Originals, audiobooks, and podcasts, one credit per month to use on any audiobook title you fancy, and regular exclusive deals and discounts. Prime members can have three months for free right now (one month for non-Prime members), after which it costs $15 per month. It may not be the best music streaming service, but Amazon Music Unlimited earned an honorable mention in our guide. Four months of free service for Prime members (three months for non-Prime members) will be enough to tempt some folks to try it. Apple Prime Day Deals The iPad (A16) (8/10, WIRED Recommends) has a USB-C port, a Touch ID sensor integrated into the power button, a 12-megapixel rear camera, and a 12-MP selfie camera in landscape mode (with support for Center Stage). You also get 5G on the cellular model. The A16 chip is the same one in the iPhone 14 Pro, iPhone 15, and iPhone 15 Plus. It's plenty powerful, but there's not enough RAM to support Apple Intelligence, making it the only iPad in the lineup without access to Apple's artificial intelligence features (possibly a feature depending on your stance on AI). Would it surprise you to know that this is the laptop I am typing on right now? Probably not. The Air is one of the most popular laptops around and for good reason. You get a powerful, portable laptop with outstanding battery life for under a grand. If your workload is graphics-intensive, you might want to go for the 14- or 16-inch MacBook Pro, but for the rest of us the Air is the Apple laptop to get. Apple's latest AirPods Pro (8/10, WIRED Recommends) are ubiquitous for good reason. They've now got USB-C in the charging case, and this latest version sounds better than ever before. They have an IP54 sweat- and dust-resistance rating, and the noise-canceling is top-tier. Pair that with six hours of juice and a case with a speaker to help use Apple's 'Find My' feature, and you have a winning combo. The Watch Series 10 (8/10, WIRED Recommends) is the best Apple Watch for most people. It does not have blood oxygen sensing, which is truly preposterous given that almost every other fitness tracker on the planet has it, but it can tell if you have sleep apnea, which otherwise requires a disruptive sleep test to diagnose. The Series 10 is thinner and lighter, so it's more comfortable to wear while sleeping, and it has fast charging, so it can track more of your activities during the day. The gateway drug of Apple Watches, the entry-level SE is a compelling deal. It doesn't have the latest standout health features, but it's compatible with watchOS 11, so you'll be able to take advantage of the new Vitals app, and it has the S8 chip, which offers support for features like Crash Detection. It remains the best Apple Watch for the money. The Beats Flex are the best headphones for Apple users under $100. They feature quick pairing, easy access to Siri, and seamless Apple Music integration, thanks to Apple's W1 chip, which ensures a rock-solid wireless connection to iOS devices. We were able to get 12-hour-plus battery life, which is good enough for a few workdays of tunes between trips to the wall charger. The Beat Solo 4 headphones offer clear and buttery smooth sound, with good instrumental separation. As you'd expect, there's hands-free Siri and Apple Spatial Audio support, and they come with a compact carrying case for easy packing. Note that there's no noise canceling or transparency mode, no auto pause feature, or water-resistance rating. For those overnight trips it's nice to have a power bank capable of charging up your Apple Watch. This Anker power bank has a handy pop-up Apple Watch charger that can deliver 5 watts and supports Nightstand mode. It also has a built-in USB-C cable and a USB-C port, so you can deliver up to 30 watts to your phone or another small device. Our top pick watch for Samsun fans, the Galaxy Watch7 features a nice rounded design—the accented 20-mm straps add a nice touch—though it is a little plain. This model infuses artificial intelligence algorithms to improve your health tracking data, like the Energy Score and updated sleep tracking capabilities. Tech Deals The Surface Laptop (7th Edition) is the best Surface device for most people. If you're looking for a lightweight and reliable Windows PC with good battery life, look no further. This deal is on the higher-end 13-inch model, with a Snapdragon X Elite processor, 16-GB RAM, and a 1-TB SSD. Performance was excellent in our testing, although this is not a machine for graphics-intensive tasks like video editing or gaming. HP's Chromebook Plus x360 is a good 2-in-1 Chromebook. Its design is nondescript, but the Intel Core i3 chip is plenty speedy for Chromebook workloads, it's lightweight, and the 2-in-1 design means you can watch movies in tent mode. The speakers sound decent and get surprisingly loud, and the 1,920 X 1,200-pixel resolution is sharp on this 14-inch IPS LCD panel. This Wi-Fi 7 mesh router offers expansive coverage and it very fast on all bands. You get a good selection of multi-gig Ethernet ports and it's easy to set up and use. The downside is the price, but this deal helps out with that. You'll need a HomeShield Pro subscription for online protection and full parental controls. This little power bank has a 25,000-mAh capacity and can deliver up to 165 watts to two devices (it tops out at 100 watts for a single device connected via USB-C). The retractable cable is nice, and the clever braided 1-foot USB-C cable doubles as a carry loop. It has a display to show the remaining battery, charging rate in and out, battery temperature, and health. Ugreen's 145-watt charger, with 25,000-mAh battery, is surprisingly compact for the power it provides. There are two USB-C ports and one USB-A port. What sets the Ugreen apart is that you can actually draw 145 watts while charging. That works out to one USB-C port at 100 W and the other at 45 W. This Anker charger is very small (unfortunately, the plugs don't fold, see below if you want folding plugs), and supports 30 watt charging. That'll be enough for most phones, and can also handle tablets and even possibly low-power laptops. This Anker plug is nice and compact, with a folding plug which makes it great for travel. If you have a phone that's capable, this is a nice way to fast charge, and this will of course be perfect for laptops, tablets, and other devices. Outdoor Prime Day Deals I've been testing smart bird feeders daily for almost a year now, and I can say definitively that no smart feeder is perfect. However, if you want something at the intersection of reliability, features, and affordability, this feeder, the top pick in our guide to the Best Smart Bird Feeders, is your best bet. This model is especially appealing as it comes with both a lifetime subscription and a solar panel to keep it charged. —Kat Merck Hydro Flask has several types of bottles and caps available in a bunch of fun color options. You can choose one color for the bottle, another for the lid, and depending on which one you're getting, yet another for the strap or straw. In our years of testing, this has proved the most durable water bottle. Ninja's cute and compact outdoor oven (7/10, WIRED Review) is temperature accurate, versatile, and adds a touch of smokiness without you needing to mess with the complexity (or size) of a full smoker. It's idiotproof and affordable, we love it for decks and those with limited outdoor cooking space, since you can do a lot of things with it. Yeti reinvented the cooler, and we thank them for it. The rotomolded Tundra is built like a tank with 3-inch-thick insulated walls, and in our testing it kept ice frozen for six days in blazing 90-degree heat while stored in direct sunlight on Adrienne's deck. I (Scott) have managed to get five days out of it in the insane humidity of Florida in the spring. A Yeti hard-sided cooler is the best cooler around. Note that this deal is only on the one, wine-colored Tundra. I like this Yeti for the wide mouth and heavy zipper that never sticks. It's free-standing, and at 14.25 inches wide, it's the perfect size for bungeeing to the top of a paddleboard or bike rack. It has both a grab handle on top and a shoulder strap, which provide plenty of points to carabiner a small dry bag or pair of flip-flops. As with the above deal, this is limited to a single color, 'Key Lime.' Of all the portable charcoal grills I've tested, the Weber Jumbo Joe remains my favorite. It strikes the best balance of affordability, features, and ease of use. It's big enough (18.5 inches in diameter) to smoke two racks of ribs or to fit burgers and corn for six people (admittedly, this was crowded) but small enough that you'll still have room in the trunk for a cooler and camping supplies. Biolite's FirePit+ is a sleek, portable, mesh box with removable legs, a hibachi-style grill, and an ash bin. It has a rechargeable 10,400 mAh battery that can power 51 air jets for up to 26 hours. This allows you to precisely control the flame, and to some extent, the heat of the fire. The FirePit+ can burn charcoal or wood and, thanks to the fans, you don't need a charcoal chimney and you'll never struggle to get a fire burning. Our favorite portable power station, the Explorer 2000 Plus has everything you need. It's got plenty of ports, supports fast charging, and the 2,042-watt-hour capacity will keep you running for days. You can charge it speedily from your AC outlet, but it also works with solar panels, like Jackery's SolarSaga 200-W Solar Panel. Just be aware that it weighs a hefty 62 pounds. When I'm not testing something else, this is the backpacking water filtration system I use and it's never let me down. It's our top pick for ultralight hikers and backpackers. It weighs just 3 ounces and has a filtration level of 0.1 microns (which gets rid E. coli, salmonella, giardia, cryptosporidium, and other common problems). The Squeeze also connects to any 28-mm diameter soda bottle (your basic 20-ounce Coke bottle, for example). I have yet to do a trip with a satellite communicator, but I do understand why people use them. If I were to bring one along, this is the one I'd get. It's tiny, light (3.5 ounces), and easily stashable. It utilizes the super-fast Iridium satellite network, so you can send a rapid SOS from pretty much anywhere. There are extra features like waypoints and interval tracking, and it plays nice with compatible Garmin watches. Best Home Deals The Artisan is a design classic, but it doesn't just look great, it performs as well. It's got plenty of power, and the tilt head lifts smoothly so you can change attachments. You get four attachments in total, including a dough hook, a wire whip, a pastry beater, and a flex edge beater that manages to get right up to the sides of the bowl so no cake mixture is left behind. The best budget Dyson vac, the Digital Slim is basic, but powerful. It lacks some of the features on newer models. For example, instead of a single power button, it still has a trigger you have to hold down while vacuuming. You'll do get a Motorbar cleaner head, a combination tool, and a crevice tool in the box. It's not compatible with fancier accessories like the Laser Slim Fluffy cleaner head that shoots out a green laser to spot microscopic dust. We have seen the price dip lower on sale, but this is still a solid deal. As seen in our guide to the Best Air Purifiers, Shark's NeverChange doesn't sport a filter you never have to change but it does last up to five years. WIRED reviewer Lisa Wood Shapiro found that this is only true in very small rooms, but it's still a great deal on a decent air purifier, which now comes in fun colors like green and lavender. (Those ones aren't on sale, though.) —Kat Merck I love this pet camera from Petcube—it's already super-affordable before the APD discount, and it has 360 PTZ rotation capabilities, 1080p HD resolution, 8X digital zoom, 2-way audio, and night vision. The camera feed rotates smoothly, and the wide fish-eye-like lens and panning abilities allow you to see pretty much the entire room. For a little over 50 bucks, this is the best camera you can buy at this price point. —Molly Higgins This dual camera has 3K high definition, with 360 degree rotation up top, and a stationary camera below for even more coverage (plus it can be mounted upside down). There's also live view and two-way chat, night vision, and 6X zoom. AI detection alerts to things like barks, meows, loud noises, and fire, so you can receive notifications for anything alarming. I love that the dual cameras let me keep an eye on my pets (and everything else) while away, and at $60, this is a great deal for a super nice pet cam. —Molly Higgins AirTags can be a bit divisive, but they're the best way to keep tabs on your stuff if you have an iPhone. Set up with the Find My app, and you'll always know where everything is. This is the best sleep mask overall. It's affordable and stylish, with many different colors to choose from. It's also soft, lightweight, and breathable thanks to its mulberry silk construction. The elastic band isn't too tight and the mask does a solid job at blocking out most light. And I like that it comes with a drawstring case, so I don't misplace it easily. —Louryn Strampe GHD has something of a cult following due to its reliability and unique features like single temperature setting (365 degrees Fahrenheit) and fun little chime to let you know it's heated up. We tout it as a more affordable alternative to the popular GHD Chronos (7/10, WIRED Review) in our guide to the Best Hair Straighteners, and at $73 off, it's about as good a deal as you're going to find on a GHD. —Kat Merck This cordless powerhouse is compact, waterproof (yes, you can use it in the shower), and charges fast in four hours. It offers three pressure settings, four tips, and a 360-degree rotating handle that gets into every nook of your mouth. The water reservoir runs for about 45 seconds per fill, just enough for a thorough clean. It also comes with a microfiber travel bag, tip case, water plug, and universal voltage. It's ideal for neat freaks or frequent travelers. —Boutayna Chokrane There are countless Philips Sonicare electric toothbrushes to choose from, but I keep coming back to the trusty 4100. Its gentle vibrations are easier on gums than the more aggressive oscillating brushes. You get a two-minute timer, two intensity settings, and a pressure sensor to protect your enamel. Battery life is excellent, lasting about two weeks per charge, and the built-in BrushSync tech lets you know when it's time to replace the head. It's simple, smart, and under $50. —Boutayna Chokrane We've loved the Revlon One-Step Volumizer Plus (8/10, WIRED Recommends) for a while. It dries and styles in one go, with its 2-inch oval barrel and four heat modes (including a cool setting). The detachable head makes it easy to pack or stash in a drawer, and the ceramic titanium tech reduces heat exposure by 50 percent. It's a smarter (and safer) upgrade from the original version—which had recall issues overseas—and a cheaper alternative to Drybar tools. —Boutayna Chokrane

Ford CEO Jim Farley Favors Waymo Over Tesla On Self-Driving: Report
Ford CEO Jim Farley Favors Waymo Over Tesla On Self-Driving: Report

Forbes

time30 minutes ago

  • Forbes

Ford CEO Jim Farley Favors Waymo Over Tesla On Self-Driving: Report

Ford Motor Company's chief executive officer Jim Farley poses next to the newly unveiled electric ... More F-150 Lightning outside of their headquarters in Dearborn, Michigan on May 19, 2021. - One day after winning an enthusiastic endorsement from President Joe Biden, Ford will officially preview the all-electric version of its best-selling F-150 truck on May 19, 2021. The battery-powered Ford F-150 "Lightning" is part of the US auto giant's $22 billion campaign to ramp up its electric vehicle offerings by 2025. (Photo by JEFF KOWALSKY / AFP) (Photo by JEFF KOWALSKY/AFP via Getty Images) Ford CEO Jim Farley doesn't agree with CEO Elon Musk on what technologies work best for self-driving. TL;DR: Farley said Waymo's approach, which uses LiDAR in addition to cameras and radar, is the best approach for Ford. Tesla's Robotaxi service and Full-Self Driving (FSD) vehicles use a cameras-only approach. 'When you have a brand like Ford, when there's a new technology, you have to be really careful. We really believe that LiDAR is mission critical," Farley said at the Aspen Ideas Festival on Friday, according to a report from Fortune. Waymo vs Tesla: Farley vs Musk 'To us, Waymo,' Farley said, according to the report, adding that Ford considered LiDAR to be important because 'where the camera will be completely blinded, the LiDAR system will see exactly what's in front of you.' One way of thinking about LiDAR is that it's a safety net for what cameras may miss. In contrast, Tesla and CEO Musk have been adamant about a cameras-only approach. Tesla, which launched its Robotaxi service in Austin earlier this month, is going with cameras-only for its Robotaxi service and FSD, the latter on option on Tesla vehicles and being promoted for the newest 2026 Model Y. 'The way that the road system is designed is for AI. I should say it's for intelligence, biological neural net and eyes. That's how the whole road system is designed,' Musk said in a CNBC interview in May. And Musk has also argued that Waymo's system is too expensive. 'The issue with Waymo's cars is that they cost 'way mo' money,' Musk said during the first quarter earnings conference call. 'The car is very expensive. Made in low volume. Teslas probably cost a quarter or 20% of what a Waymo costs,' he said. Ford, for its part, currently offers BlueCruise, an Advanced Driver Assist System, that is analogous to Tesla's Autopilot and General Motors Super Cruise. Like GM's Super Cruise, Ford's system is designed primarily for hands-free highway driving. Neither is as ambitious as Tesla FSD which is designed to handle both local and highway driving.

This overlooked risk to financial markets usually lurks quietly under the surface. But now it's ‘shouting, not whispering'
This overlooked risk to financial markets usually lurks quietly under the surface. But now it's ‘shouting, not whispering'

Yahoo

time31 minutes ago

  • Yahoo

This overlooked risk to financial markets usually lurks quietly under the surface. But now it's ‘shouting, not whispering'

Much attention has been focused on the U.S. current account deficit, or the imbalance between imports and export, but there's another metric that's poised to amplify market shocks. That's the net international investment position, according to Kevin Ford, FX and macro strategist at Convera, who likens it to America's financial scorecard with the rest of the world. President Donald Trump's trade war has focused much of Wall Street's attention on the U.S. current account deficit, or the imbalance between imports and exports. But there's another metric worth following that could worsen financial risks. According to Kevin Ford, FX and macro strategist at Convera, the country's net international investment position (NIIP) often gets overlooked. It measures how much the U.S. owns abroad versus how much the world owns in the U.S., he said in a note last week, describing it as America's financial scorecard with the rest of the world. And by that score, the U.S. is in the red by about $26 trillion, or nearly 80% of GDP. 'That means foreign investors hold way more American assets than Americans hold abroad,' Ford added. 'It's a setup that works fine when confidence is high, but in shaky times like 2025, it can become a pressure cooker.' Indeed, times have been shaky. The U.S. Dollar Index is down 10% so far this year as the shock of Trump's 'Liberation Day' tariffs continues to reverberate, creating doubts about U.S. assets once deemed reliable safe havens. In fact, the dollar's year-to-date plunge is the worst since the U.S. transitioned to a free-floating exchange rate in 1973, effectively ending the post-World War II system of fixed rates under the Bretton Woods agreement. Meanwhile, legislation that would add trillions of dollars to fiscal deficits is advancing in Congress, stirring more anxiety among foreign investors, especially those who hold U.S. debt. Put it all together, and this year has been a textbook example of how a negative NIIP profile can magnify currency turmoil, Ford warned. 'And because so much of the capital propping up the U.S. financial system comes from abroad, even small shifts in sentiment can lead to big outflows,' he added. 'That's a lot of dollars being sold, and fewer being bought, and voilà, the greenback stumbles.' Circling back to the financial scorecard analogy, Ford explained that the problem with focusing on the current account deficit is that it only shows the flow of transactions, i.e. imports versus exports. By contrast, the NIIP shows the overall pile of debts—and ignoring that would be like judging a person's spending habits without checking their credit card balance, he said, making trust 'your most important asset.' 'Yes, trade deficits, interest rates, and Fed signals all play a role, but the NIIP tells you just how exposed the U.S. is when things go sideways,' Ford concluded. 'It's the quiet structural risk lurking under the surface, ready to amplify shocks. And in a year like this, it's been shouting, not whispering.' Waning confidence in the dollar has spurred investors and central banks around the world to load up on gold, which has soared in price in recent years and particularly this year, surging 21% in 2025. Trump's unrelenting pressure on Federal Reserve Chairman Jerome Powell to cut interest rates has also weakened the dollar lately. While many on Wall Street see even more downside potential ahead for the dollar, the AI boom that's still drawing billions in global investment flows to the U.S. offers some hope for relief. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store