There’s a well-known maxim in the markets: sell the rumor, buy the fact—a belief that market expectations can often be worse than reality. However, in the case of last week’s US tariff announcement, the outcome was, unfortunately, more significant than anticipated, leading to increased volatility across global markets. Equities took a hit, and bond yields fluctuated. This is a strong reminder of the importance of diversification and maintaining a margin of safety in your investment strategy. While the new tariffs will undeniably have significant implications for global trade, economic growth, and inflation, it’s important to note that volatility can create attractive entry points for quality assets, especially for investors with a medium- to long-term time horizon.

Morningstar’s Head of Institutional Portfolio Management, Michael Malseed, has released a video which discusses implications for Australian investors and the importance of maintaining a long-term view.

Please click here to watch - Implications of Trump's tariff announcement

The US tariff announcement has added to market volatility and uncertainty. While short-term disruptions are inevitable, it’s important to recognise the importance of diversification and company fundamentals. It’s also important to remember that this situation will continue to evolve, and we’ll ensure to keep you informed of any future changes.

In the meantime, if you have any questions at all about your portfolio, please feel free to contact your lead adviser and/or our trusted advisory team on 03 9097 6000.

On a lighter note, we would like to wish you a Happy Easter. We hope the break is a relaxing and enjoyable one. 

Regards,

Ben, Sam and Laura Cranage