As you may know, the Trump administration has recently implemented (and subsequently altered) tariffs targeting all countries, mainly China.

These tariffs are part of the administration’s broader strategy to address trade imbalances, protect American industries, and encourage domestic manufacturing.

While these measures aim to strengthen the U.S. economy, they have caused short-term volatility in financial markets. Tariffs increase costs for American businesses that rely on imported goods, potentially affecting corporate profit. Retaliatory tariffs from trading partners could further disrupt global supply chains.

It is important to remember that the tariff-related impacts are part of a larger economic landscape, and the effects may vary over time. While short-term market reactions are understandable, they don’t necessarily reflect the long-term growth potential of the markets.

The Importance of Long-Term Investing

One of the most important principles we emphasise is the value of long-term investing. Despite the market fluctuations caused by tariffs and other short-term factors, history has shown that markets tend to recover and grow over time. By staying focused on your long-term financial goals and maintaining a diversified portfolio, you can ride out periods of volatility and position yourself for long-term success.

Short-Term Volatility is a Factor in Long Term Investing

It’s natural to be concerned when the markets experience volatility, especially in response to shocks like imposing tariffs. However, I want to remind you that these short-term disruptions are often temporary. Your wealth is built over time by adhering to a disciplined strategy to give your investments the best opportunity to grow.

Remember, reacting to short-term market movements is rarely a good idea, and you should try to avoid being swayed into making hasty decisions based on day-to-day share market movement.

As always, please feel free to reach out if you have any questions – we are here to help!