In summary:
- April was marked by high volatility in markets, driven by Donald Trump’s announcement of tariffs on US imports for nearly all major trading partners, with an effective tariff rate of 25% if implemented - the highest rate since the First World War.
- The impact of the tariff announcement was far reaching – weakening the US dollar and negatively impacting asset classes including equities and fixed income in the first half of the month. Once Trump rowed back on some of his proposed tariffs, equities recovered in the latter half of April – leading to a broadly flat performance in equity markets.
- US treasuries typically perform well in times of weaker equity performance, but that was not the case this time.
- The JM Finn Investment Management Service portfolios benefitted from an underweight allocation to the US.
The value of securities and the income from them can fall as well as rise. Past performance should not be seen as an indicator of future returns. All views expressed are those of the author and should not be considered a recommendation or solicitation to buy or sell any products or securities.
