Financial markets are no strangers to surprises, and recent events have been no exception. Even with prior warnings, the announcement of new trade tariffs sent a ripple of uncertainty through global markets. While tariffs are often positioned as a tool for economic strategy, the prevailing consensus among economists is that they tend to be more harmful than helpful. They drive inflation, slow economic growth, and shake investor and business confidence — sometimes even before they take effect.

While market volatility can feel unsettling, it is important to take a long-term perspective. Economic cycles and policy changes are part of the broader investment landscape, and history has shown that well-structured portfolios are resilient through periods of uncertainty.

Market Reactions and Investor Sentiment

Markets are highly sensitive to uncertainty, particularly when the risk of retaliation comes into play. Recent moves by China have reinforced these concerns, triggering volatility across asset classes. The famous saying, “When you’re in a hole, stop digging,” seems particularly relevant here, yet the current policy trajectory suggests further escalation rather than de-escalation.

Just a few months ago, investor confidence was high, with US equities hitting record levels. Many had anticipated a more measured approach to economic policy. However, the sharp market reactions to recent announcements indicate that sentiment is shifting. Rather than functioning purely on fundamentals, markets appear to be operating on momentum and emotions, making short-term movements harder to predict.

How Collidr managed portfolios are being positioned

Collidr take a disciplined and proactive approach to navigating market fluctuations. Focus remains on protecting and growing wealth, ensuring investments are positioned to benefit from long-term opportunities while mitigating short-term risks.

• Fixed Income & Government Bonds: Increased allocations to European Government Bonds and Global Short Duration Government Bonds, which tend to perform well in times of uncertainty as investors seek stability.
• Gold & Defensive Assets: Exposure to gold has been reinforced, particularly through existing funds which have been held since December 2023. Gold has traditionally been a strong hedge against market instability.
• Quality Equities & Technology: While technology has been an area of concern in past downturns, there has been a careful rotation of allocations to emphasize large-cap, high-quality stocks and defensive sectors that are less susceptible to economic fluctuations.

Periods of volatility can create opportunities as well as challenges, and our expertise allows us to navigate these complexities with confidence. By maintaining a diversified and balanced approach, we continue to focus on delivering strong, long-term outcomes for our clients.

If you have any questions or would like to discuss how these developments may affect your investments, please contact us on 0330 320 9280, email or complete our online enquiry form.

This document is provided as a general communication and the information contained herein is for informational purposes only and examples used are for illustrative purposes only. This document provides commentary and data on global markets and does not provide any reference to specific products and should not be construed as a solicitation or offer, or recommendation to acquire or dispose of any investment in any jurisdiction.  While all reasonable efforts are made to obtain information from sources which are accurate at the date of production no representation is made or warranty provided that the information or any opinions contained in this document are accurate, reliable or complete. The information and any opinions contained in this document are based on current market conditions and certain assumptions and are subject to change without notice. Any user must, in any event, conduct their own independent due diligence and investigations, together with their professional advisers, into legal, regulatory, tax, credit and accounting matters before making any investment, rather than relying on any of the information in the document. The value of investments and the income from them can go down as well as up and past performance is not a guide to future performance.

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This document is distributed by Craven Street Wealth. All content is for general information only and does not constitute investment, tax, legal or other forms of advice. You should not rely on this information to make, or refrain from making any decisions. Craven Street Wealth is the trading name of Craven Street Financial Planning Limited (FCA No. 135202) is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No: 03852054.Craven Street Wealth Limited is a registered limited company in England and Wales No: 13077997. Registered office: 3 Gough Square, London EC4A 3DE. Data references are for the period to 1987 to 2024 and are correct as of data of publication (4th of April , 2025).