Stacey Ash

Markets seem to be getting a good post-Trump election reality check at present. Euphoria in the US is giving way to the recognition that a combination of wider tariffs being applied and large layoffs in the public sector could equate to a slowdown in the US economy. This in turn is being reflected in stock prices particularly for those that were previously beneficiaries of the speculative AI trade. Conversely,

European indices are beneficiaries of the volte face in US foreign policy towards Russia and Ukraine, although bond markets are reflecting the potential cost of this. Portfolios have previously positioned towards lower duration and are globally diversified. This is a good thing, as acting in haste during higher volatility is usually an unwise move. Trying to read the next policy shift drama coming out of the US is a fool's errand, so patience is required as we await a period of stability on this front.

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