Market Volatility: What Recent Tariffs Mean for Investors and How to Respond

In the wake of sweeping tariff announcements out of the United States, global markets have experienced sharp declines, prompting concern among investors. While much of this volatility stems from the US’s unexpected policy changes, the impact has rippled across Europe and Asia, creating uncertainty for UK investors.

As independent financial advisers, we understand that periods of market volatility can cause anxiety. It’s during these moments that seeking advice from a certified adviser or financial advisor becomes crucial. Whether you’re reassessing your pension strategy, looking for protection in volatile markets, or simply wanting clarity on your financial goals, this is a time to act prudently.

Context: A Shift in Global Trade Dynamics

At the start of 2025, the economic outlook was largely optimistic, with expectations of steady growth and minimal risk of recession. However, the US’s sudden imposition of tariffs — followed by retaliatory moves from China — has sparked fears of stagflation, combining economic stagnation with rising inflation. The result has been a dramatic sell-off across global equities.

Markets such as the S&P 500, European indices, and Asian exchanges have all seen declines exceeding 15%. Even traditionally safer assets like gold have dropped as investors rush to liquidate holdings. These movements signal what’s known in investment circles as “capitulation” — when investor panic triggers indiscriminate selling.

Market Signals and Central Bank Responses

Despite the turbulence, certain indicators suggest we may be approaching a market bottom. Bond markets are now pricing in rate cuts by mid-2026, with shorter-term government bonds outperforming. This could present opportunities for those working with a financial adviser to re-enter or adjust portfolios strategically.

Potential market stabilisers include:

• De-escalation of trade tensions, possibly prompted by political pressure or poor market reception.
• Central bank intervention, particularly from the Federal Reserve, through rate cuts or liquidity measures.
• Global fiscal stimulus, especially from Europe and China, which could offset trade-related shocks.

What We’re Doing for Clients

Our investment committee recently convened to evaluate the impact of these developments. Our long-term investment philosophy remains unchanged. External shocks, while unsettling, are accounted for in our strategic planning. If you’re wondering how to navigate this environment, now is a great time to book a meeting with an adviser. A top independent adviser can help you align your investments with your tolerance for risk, long-term goals, and current market opportunities.

Portfolio Resilience During the Sell-Off

Despite the sharp market decline, our portfolios have shown relative resilience. Exposure to high-quality global equities and defensive funds has helped cushion the blow. Funds such as global income strategies and absolute return vehicles have held up well.

Fixed income holdings — particularly UK gilts and US Treasuries — have provided stability, rising approximately 5% since the risk of tariffs first intensified in January. Meanwhile, the alternatives segment of portfolios has remained steady and is positioned for positive performance regardless of geopolitical developments.

Looking Ahead: Staying Calm and Strategic

Periods like this test investors’ resolve. But for those working with a certified adviser, it’s also a chance to revisit your financial plan and make proactive decisions. We advise our clients to stay calm, focus on fundamentals, and not react emotionally to headlines.

If you’re seeking the best financial adviser, looking to review your pension strategy, understand investment fees, or explore protection options, now is the time. Book a meeting with an adviser today and ensure your financial plan is built for both resilience and opportunity.

Staying informed and having a trusted independent adviser by your side makes all the difference. Market volatility is part of the journey — but with expert advice and sound planning, your financial goals remain within reach.

Book a meeting with a financial adviser today and take control of your financial future.

Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom.  Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.