Since our initial communication, post President Trump’s announced sweeping tariffs on 2 April, global markets have endured a fortnight of policy-induced chaos. We’ve seen violent market swings, sharp bond yield drops, spikes, and a series of contradictory policy announcements that have sown uncertainty across the global financial system.
March closed out the first quarter on a constructive note for local investors, with the FTSE/JSE All Share Index returning +3.6% for the month and +5.9% year-to-date. However, while headline performance was encouraging, it masked a bifurcated market beneath the surface.
The past week has brought significant market volatility, with investor sentiment shaken by a new wave of tariffs announced by the Trump administration. While moments like these are unsettling, they also highlight the value of diversified portfolios, clear thinking, and proactive decision-making, all things we’ve consistently built into our approach.
Developed market equities performed strongly in November (+4.8%), with the US leading the way (+7.7%) driven by the “Trump trade.” Emerging market equities, however, experienced a second consecutive monthly decline (-2.8%), largely attributed to concerns over protectionist trade policies from the incoming US administration.
Given the inherent volatility Trump’s new policies could introduce, diversification remains crucial. Adjusting exposures is prudent, but it’s equally important to avoid short-term, reactionary decisions.
With Donald Trump’s re-election on November 4, 2024, markets are responding to the potential implications of his policies, which prioritize economic growth through tax cuts, deregulation, and robust domestic industry support.
Paul Summers recounts why he’s keen on increasing his stake in Scottish Mortgage shares, despite the last two years or so having been tough for current share owners.
A recording of the Nomura Client Presentation, presented on 10 August 2023
This article by Fundsmith’s CIO, Terry Smith, that was published in the Financial Times.
Scottish Mortgage Investment Discussion: 2023 update
