Stock markets around the world have fallen following the US announcement of tariffs on imported goods. President Trump billed 2 April as “liberation day” when he detailed trade tariffs with rates set individually by country. The tariffs are designed to encourage companies to make more products in the US and to boost US jobs.
Whatever the longer-term outcome, the short-term impact has been significant. The tariffs have disrupted expectations around global economic growth, which is strongly linked to global trade. And prices are expected to rise (known as inflation), both in the US and worldwide.
Stock markets have fallen in a way last seen in the 2020 pandemic. Markets are expected to remain volatile in the days and weeks ahead, as countries consider their response. Some may reciprocate or try to negotiate with the US to avoid / reduce tariffs on certain strategic goods.
Sharp market falls are unsettling. So it’s important to stay focussed on your long-term investing goals. Cashing in investments when markets are low means you may miss out when markets recover. If you make regular payments, you’ll be buying more units during market downturns, and fewer when it rises.
A diversified investment portfolio – where your money is spread across different investments and markets – is always a good idea. It means that the risks to your money are spread too.
So, whether you invest in one of our diversified multi asset growth approaches, or one of our single asset feature funds, keep focused on your long-term investment strategy and make sure you are comfortable with the level of risk you are taking.
You can keep track of your investments by signing in to Online Service or our app.