Following the US Government’s recent decision on tariffs and its subsequent impact on markets, I wanted to personally update you on where we stand and how we’re responding on your behalf.
Our investment view
- Higher tariffs are likely to stay part of the economic landscape. This will weaken growth and earnings growth with an impact on equity prices, which the market has already anticipated.
- Our portfolio remains resilient due to significant asset class and geographic diversification. However, it is clear that there will be readjustments, which have inevitably caused a short-term price reduction but likely a higher long-term return expected in the future.
- Our relative positioning remains below the risk levels of our benchmarks, and we’ve sold US equity recently as we continue to adapt to the full implications of a new trade regime and US policy.
- Currently, the team is looking at several opportunities to add risk in a considered way, including potentially increasing our equity exposure and re-considering the dollar exposure of our portfolio, among other themes.
What we think you should do
- We believe that if you can invest more now and have a long-term time horizon, historically these are the key moments where increasing your position could pay off, ideally with a regular monthly saving plan.
- However, as we always stress, the most important factor for your long-term success is not to disinvest. If you really don’t feel comfortable, you could reduce the risk of your portfolio by choosing a lower risk profile until your confidence increases.
Join our investment experts for our webinar on Monday, April 14th at 6pm to learn more about the current situation and our approach to it.
We are always here to support you, and we’ll continue to work behind the scenes, making adjustments to the portfolios as market conditions evolve and new opportunities arise.
If you’d like to explore this further, we invite you to read our CIO Richard Flax’s latest insight on current market volatility and our investment positioning.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
