Aim To Keep Risk Modest And Quality High

2025-05-02 03:25:00 ET

Summary

• As global markets digest the recent tariff news and economic and geopolitical uncertainty grow, we’re seeing investors continue to rotate out of cyclical names and into less risky assets, like staples, utilities, healthcare and gold.
• Looking ahead, investors should ready themselves for a likely period of heightened volatility as market risks continue to shift while tariff policies play out.
• In my view, this uncertain picture calls for a greater focus on higher-quality, more stable names and an avoidance of volatile stocks.

Sometimes the classic market aphorism - 'sell the rumor, buy the news' – turns out to be bad advice. While markets have stabilized in recent weeks, the announcement of a much more aggressive set of tariffs undermined already fragile investor confidence and led to worst trading day since March 2020. While stocks are well off the lows, the damage to consumer, corporate and investor confidence has already been done. That, coupled with still record high policy uncertainty, suggests a very different trading environment compared to the past two years....

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