Market Perspectives
The Week After Liberation Day Takes Markets on a Roller Coaster Ride
What a week! Markets sold off dramatically since last week, in response to the U.S. reciprocal tariffs announced on April 2 that were far higher than anyone expected. Then, the U.S. and China started multiple rounds of escalating responses to each other, before a 90-day pause was announced on the 60 countries that faced tariffs of up to 50%, although a base rate of 10% on most countries remains in place.
As we walk through the following sections, explaining how we got here and what might happen next, the takeaway is that the environment is so uncertain and dynamic that investors need to remain focused on their long-term plans, including return objectives, asset mix and positioning that is appropriate for their risk tolerance. While the following days, weeks, and months, could be sometimes gut-wrenching in financial markets, most investors have an investing horizon that outlives one political administration or economic/market cycle, and should be positioned accordingly.
