Markets have turned volatile following the announcement of sweeping new tariffs. While sharp selloffs can feel unsettling, especially when headlines dominate the narrative, it’s important to zoom out. Here are a few points to help put the tariff selloff into perspective.
1. Trump signals willingness to negotiate
Tariff announcements are often confusing—and this time is no different. Despite multiple White House aides insisting the new tariffs were not meant as a negotiating tactic, Trump has now said he’s open to tariff talks with other countries—if they offer “something phenomenal”.
This suggests tariffs are being used as a negotiation tool rather than a fixed policy outcome.
2. Markets have seen this before
The 2018–2019 trade war with China caused sharp market volatility—but once uncertainty settled, markets rebounded. Over the long term, corporate earnings remain the key driver of equity performance, not short-term headlines.
3. Fear is high—but that may be a signal
According to CNN Fear and Greed Index, the market is now in “Extreme fear” mode. While sentiment indicators don’t predict future prices, they often reflect emotional extremes—a classic contrarian signal for long-term investors.
4. It is never a good idea to “panic sell”
Selling in a downturn often means missing the rebound. In fact, 50% of the market’s best days occur during bear markets. Missing the 10 best days over the last 30 years would have cut your returns by half; missing the best 30 days would slash returns by a staggering 83%.
5. Not all assets react the same
While US equities saw sharp declines, other asset classes held up better. Global bonds and gold delivered strong performance amid the volatility, highlighting the importance of diversification.
| 3 April Return | YTD Return | |
| Global Bonds | 1.4% | 4.5% |
| Gold | -0.6% | 18.3% |
| China Equities | -1.6% | 14.0% |
| Europe Equities | -2.5% | 8.9% |
| Japan Equities | -2.8% | -12.1% |
| Global Equities | -3.4% | -3.6% |
| US Equities | -4.8% | -7.9% |
| Bitcoin | -5.4% | -12.3% |
What Should You Do Now?
✅ Keep emotions in check
Don’t let fear drive decisions—stay invested, time in the market beats timing.
✅ Review your investment portfolio
Reassess goals and rebalance exposure; diversify beyond growth stocks into global strategies like Equity100, or strategies with downside protection like Protected Portfolio.
✅ Use the sell-off to your advantage
Market dips reset valuations of equities —consider investing extra cash or dollar-cost averaging over time.
✅ Diversify by investing in bonds
Bonds provide diversification and steady income. Currently, bonds offer attractive yields. For instance, yield-to-maturity of Income+ Preserve and Enhance stands at 6.5% and 7.0% respectively.
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