Strategies for safeguarding your investment portfolio against tariffs imposed on 'Liberation Day'
Brace yourself for a whirlwind of tariffs hitting US imports today as Donald Trump's 'Liberation Day' threatens to disrupt the global trade landscape. So, how can you safeguard your investments from this chaos? Well, it ain't going to be a walk in the park, but here are a few strategies to help you weather the storm.
Tariff day is shaping up to be a rollercoaster ride, and experts suggest keeping a steady hand on your investments to avoid getting caught off guard. Long-term, thematic investing combined with safe-haven assets might just provide the shield you need to sidestep the worst impacts.
Experts predict increased global inflation and rising interest rates as a result of tariffs. Stock markets have already taken a hit, with the S&P 500 dropping 4.6% in Q1 2025, ending a five-quarter winning streak, thanks to investor concerns about tariffs.
But fear not! Experts have identified some top stocks, funds, and trusts that could offer some relief from the tariff turbulence.
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Navigating the Tariff Maelstrom
Investors must engage more actively with their portfolios during this uncertain economic backdrop, says Darius McDermott, managing director of Chelsea Financial Services. He recommends diversifying portfolios and allocating investments based on long-term objectives and appropriate risk tolerance.
Raymond Backreedy, chief investment officer at Sparrows Capital, reinforces this view, emphasizing a globally diversified multi-asset portfolio as the key to success.
Investment Tactics for Tariff Protection
While diversification and long-term thinking are crucial, there are a few strategic moves that might help you sail through the tariff tempest.
European and UK Stocks
McDermott suggests looking into European or British funds for value despite the poor outlook from US-centric pessimists. He particularly recommends the Liontrust European Dynamic fund for access to "resilient, high-growth businesses," and funds like VT Downing Unique Opportunities and Schroder British Opportunities for discovering Britain's small and mid-cap "hidden gems."
Global Diversification
Given the unpredictable nature of tariffs under Trump, a global perspective is essential, so ensure your portfolio is as diversified as possible, in terms of both asset classes and geographies.
Defensive Assets
In times of market volatility, bonds can offer a touch of stability, says McDermott. For example, Invesco Bond Income Plus can provide steady income streams and protect against market swings.
Gold has proven to be a trusted safe haven during uncertain times, with prices hitting record highs due to investors seeking out secure havens for their money. You can invest in gold via gold ETFs or consider the Jupiter Gold & Silver fund for exposure to both gold and silver.
- To safeguard your investments during the tariff chaos, consider a long-term, thematic investing approach that includes safe-haven assets like gold.
- Experts suggest that investors must engage more actively with their portfolios, diversifying and allocating investments based on long-term objectives and appropriate risk tolerance.
- For those seeking value despite the poor outlook, European or British funds could offer opportunities, such as the Liontrust European Dynamic fund, VT Downing Unique Opportunities, and Schroder British Opportunities.
- Given the unpredictable nature of tariffs, a globally diversified multi-asset portfolio, with both asset classes and geographies, is essential for success.
- In times of market volatility, defensive assets like bonds and gold can offer stability, with options like Invesco Bond Income Plus for steady income streams or Jupiter Gold & Silver fund for exposure to gold and silver.
