Thought leadership
The bottom line on market volatility and tariff talk
Empowering investors to stay focused and find opportunity amidst volatility.
Market update: The bottom line on market volatility and tariff talk.
Market volatility is back in the spotlight as tariff tensions and trade uncertainty shake investor confidence.
Understanding the impact of these shifts is key to making informed, long-term investment decisions.
- Rising tariffs are adding pressure to input costs and inflation, creating an unpredictable economic environment.
- Increased uncertainty introduces new layers of risk for investors, with markets reacting sharply to shifting trade and policy developments.
- Despite short-term turbulence, volatility can create openings for long-term investors who are diversified and focused on their goals.
Market volatility has taken center stage in global financial markets. The White House announced tariffs on multiple countries that have contributed to an uncertain outlook for the global economy. And investors are reacting with falling equity prices and wider credit spreads.
But here’s the bottom line: Uncertainty is perhaps the only certainty of investing in financial markets.
In fact, any endeavor that involves predicting future outcomes inevitably exists in a world of doubt. And there are moments, when that uncertainty feels more…present and personal.
Make no mistake, these are difficult times, but they are also expected times. And we can face them together.
The temptation to take action and seek control of our circumstances is both understandable and human nature. But it’s in these times that we are most likely to pursue the most harmful decisions, driven by fear, anxiety and uncertainty.
Rather, now is the time to double down on the financial plans we put in place for exactly these moments. We need to focus on the reasons why we invest, not just how those investments are acting today.
The answers here might be both simple, and unsatisfying, because volatility is an uncomfortable and natural part of market cycles. But with simplicity can come clarity. Stay in contact with your financial team and share your concerns. We encourage investors to stay diversified and avoid fear-driven changes to your portfolios.
Consider that market turbulence might present tax planning opportunities. And most importantly, keep your long-term personal and financial goals in focus.
Our perspectives on industry challenges and opportunities.
Important information
A credit spread is the difference in yield between two debt securities with the same maturity but different credit quality.
Independent Advisor Solutions by SEI is a strategic business unit of SEI Investments Company, Investing involves risk including possible loss of principal. Diversification may not protect against market risk.
Neither SEI nor its subsidiaries provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.