Markets move fast, and headlines can sometimes feel overwhelming. At Trust Point, we’ve navigated all kinds of market conditions for over a century, and our focus remains the same: helping you make sense of what’s happening while staying aligned with your long-term financial goals.
Recently, new tariffs have been announced, expanding on previous trade policies. These measures impact a wide range of industries and global trade relationships, increasing uncertainty in the markets. As a result, stocks have declined, bonds have seen increased demand, and the U.S. dollar has weakened against major currencies.
While these developments create short-term volatility, history has shown that businesses, markets, and investors adapt. The key is to remain disciplined and avoid reactionary decisions based on short-term movements.
Market Impact and What to Expect
The latest tariffs are designed to encourage domestic production, but they also introduce cost pressures that could impact corporate earnings and consumer prices. In response, companies may adjust supply chains, and global trading partners could introduce countermeasures. The extent of these changes remains uncertain, and markets will continue to react as the situation evolves.
Short-term, we expect volatility to remain elevated as businesses adjust and investors process new information. Longer-term, markets have always found ways to stabilize and move forward. We are closely watching corporate earnings as these will provide more insight into how businesses are responding. We are also watching the Federal Reserve as higher tariffs pose the risk of increased inflation and slower growth, challenging the current policy path.
How We’re Managing Your Portfolio
At Trust Point, we take a proactive approach to managing risk and identifying opportunities, particularly in uncertain environments like this one. Our investment team is:
- Maintaining strategic portfolio positioning to ensure your investments remain aligned with your long-term goals.
- Retaining hedging strategies to protect against inflation and market volatility.
- Monitoring for tax-loss harvesting opportunities as part of our ongoing portfolio management process.
- Evaluating market and economic conditions daily and making adjustments as needed.
- Keeping diversification top of mind to help mitigate risk in times of uncertainty.
Looking Ahead
While short-term market movements can be unsettling, the fundamentals of long-term investing remain unchanged. Our team is committed to staying ahead of developments, adjusting portfolios as needed, and keeping you informed along the way.
If you have any questions or would like to discuss your investment strategy in more detail, please reach out. As always, we remain focused on your financial success.
