Tariff concerns behind us, get invested.
Key Messages for Investors
- The Trump Administration has made progress in trade agreements with major economies including the EU, UK, Japan, South Korea, and a preliminary deal with China to pause the most extreme tariffs.
- These agreements cover about 63% of global GDP (excluding the US), indicating reduced trade policy uncertainty.
- With tariffs now likely to stabilize around current levels we expect softer, but still manageable macroeconomic conditions.
- We are closing our Slight Underweight to Growth assets.
- Valuations do remain stretched, particularly in the US, however, we recognise they can remain so for extended periods. We rely on our active managers and strategic asset allocation to manage potential market volatility amid elevated equity prices.