Lessons from Trump’s tariff tumult
In the absence of unpriced knowledge, investors have no basis for trading on tariffs
US PRESIDENT Donald Trump’s tariff tempest has turned markets upside down, rocking investors globally. This spurred the Monetary Authority of Singapore to cut its 2025 growth outlook, as tariff-driven “demand shocks” slam the trade-orientated economy. What might Trump do next? No one knows – maybe not even Trump himself.
But April’s absurdity offers clear investing lessons: Trying to time markets based on widely known factors is folly. So is selling amid panic.
Fact: Trump’s tariffs are bad – especially for the US itself. This is one reason non-US stocks, including the Straits Times Index (STI), are far ahead in 2025. But fear of tariffs is excessive, priming a market recovery. Here is why.
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