Portfolio Adviser - Portfolio Adviser May 2025
Editor’s letter
2025-05-15 20:31:53
May 2025
The Trump effect
We recently passed Donald Trump’s first 100 days as US president. Has there ever been a president that has had as much impact on markets during their first few months of power?
Trump has worked feverishly to reshape policy at an unprecedented rate and the effects have been felt far and wide. National headlines around the world have described the proposed tariffs as “destructive”, “reckless” and a “man-made economic crisis”.
The president has promised to deliver more of the same and push more limits – and there is no doubt he will try.
Over a month on from so-called ‘liberation day’, markets are still extremely jumpy as Trump flip-flops around negotiating various tariffs using whatever bargaining power he can.
While we are still not entirely sure what it all means, it is clear the world is changing into something we have never seen in our lifetimes.
‘ Over a month on from so-called “liberation day”, markets are still extremely jumpy as Trump flip-flops around negotiating various tariffs using whatever bargaining power he can’
Fund managers and asset allocators have taken a step back in this volatile period and assessed if and where there needs to be some adjustments – as you will read from the various interviews, comments and features in this month’s magazine. Are they defensive enough? Are there buying opportunities? Is it time to buy safe havens or is it too late?
When prices are tumbling it can be hard to stick to your guns and not abandon strategies and themes that have been carefully planned. It can also be extremely difficult to spot when something really isn’t working, and it’s time to change course.
I do not envy active fund managers right now. But, as you will find out in the following pages, there are ways through and some real pockets of opportunity across asset classes. This month’s cover story explores ways to diversify portfolios and the alternatives to so-called ‘safe-haven’ assets.
While some of the ‘liberation day’ falls had been reversed at the time of writing, we can start to wonder if markets will become less reactive to Trump ‘noise’.
I imagine there are plenty of investors that are hoping so.
Natalie Kenway, acting editor, MA Financial Media, natalie.kenway@markallengroup.com
Lauren Hardy is currently on maternity leave.
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