Always the deal maker!
My word, there are some sensational and emotional headlines out there. The media are having a field day. Equity markets have fallen, some more aggressively than others, and whilst I don’t wish to be flippant, far from it, because it’s painful, this correction may prove to be a healthy one when we look back.
The heat has been taken out of the markets and will present opportunities for sure. It will take a while for everyone to work out the ramifications, and investment specialists will be watching the data very carefully. There will be some ‘hair trigger’ reactions to the news flow but with sentiment suddenly becoming very weak, there are undoubtedly opportunities at current valuation levels. This alone is a very good reason to stay invested.
It’s also important at times like this to differentiate between volatility and risk. Having a financial plan is paramount in our opinion. Markets go up and down, but the stress test is, “are you still going to be okay, not run out of money and be able to live the life you want?” This is managing risk. Volatility refers to the variance in price fluctuations.
You’re probably already fed up with hearing about tariffs. Equity markets reacted negatively as one expected and in Europe have been hit again today. The tariffs and their potential impact were larger than the markets anticipated. Earlier in the week, sentiment was mildly optimistic. We knew there was tough news in the offering as markets had already been jittery from tariff nerves since the beginning of February but Wednesday’s announcements just ‘poured petrol on the fire’.
Trump is, of course, a deal maker and all the signs are that he will ‘row back from here’ as long as countries come to the negotiating table.
I don’t think I can remember ever receiving so many e-mails and market commentaries from investment houses as I have over the last two days, and they are still coming at a pace as I write. As usual, our carefully chosen investment partners stood out from the crowd in how they captured what was going on.
In this week’s update, we also explore the way forward and what may happen from here.
Today we’ll cover:
- What happened on Liberation Day?
- It’s about Main Street and not Wall Street at this juncture
- The response
- Reasons not to panic
- What’s happening across markets?
- How to navigate the investment landscape
- What happens next?
Continues…
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Risk warning
Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.