What could this mean for your portfolio?
While the situation is dynamic and changing with each passing headline, here are some things that we must remember.
Diversification is your friend.
While it is true that US stocks have been a star performer for many years versus international stocks, the tide may be beginning to turn on that trend.
For those patient investors who have stuck with a strategy of international and emerging markets diversification, this will help provide a cushion against a period of potential underperformance from US stocks.2
Bonds have performed as expected in a scenario like this, as investors look for relative safety from stocks.
We are investing in companies.
Companies potentially affected by these policies are already considering steps to minimize the impact of tariffs on their business, how to capitalize, or both.
There will undoubtedly be winners and losers, and that is why owning a broad basket of thousands of global companies will prevail over trying to pick which countries or sectors of the global economy will be the winners or losers.
Your investment strategy was designed to account for market fluctuations.
When we first meet with our clients, we develop a detailed financial plan based on their specific goals and values regarding money and build a globally diversified portfolio of investments.
This portfolio is tested against good markets, poor markets, and everything in between, including times like this.
Market volatility, especially in response to geopolitical events like tariffs, can create uncertainty.
However, history has shown that disciplined investors who stick to their long-term plans are rewarded.
While the headlines may shift daily, your investment strategy is built for the long haul.
As always, staying diversified, patient, and focused on your personal goals will serve you far better than reacting to short-term noise.
If you have any concerns or want to revisit your financial plan, we’re here to help. |
