Filmed on 9th April at 2:00pm
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Yesterday, Partner Rachel Winter sat down with Chief Investment Officer Simon Marsh to discuss the rapidly-changing landscape of global trade relations.
After filming our update, President Trump announced a 90-day suspension of reciprocal tariffs, albeit with a ratcheting up of tariffs on China. Unsurprisingly, this was received positively by markets. Signs of stress in the US Treasury market appear to have forced the president’s hand, but the policy pause will bring some much-needed calm to markets.
Investors will also take comfort in the fact that Trump is willing to negotiate and it was significant that neither Peter Navarro nor Howard Lutnick (tariff policy hawks) were present at the White House briefing, which indicates that a more market-sensitive approach to tariff policy is now in train. Whilst the uncertainty emanating from ‘Liberation Day’ will have been damaging for growth, the announcement has reduced the probability of recession, which is further good news for investors.
Therefore, whilst the fog of uncertainty has not entirely lifted, markets should be able to regain their poise, as sell-offs like this create attractive entry points for long-term investors.
