Reimagining portfolios amid midsummer uncertainty

[SINGAPORE] In the two months since “Liberation Day”, investors have been grappling with this midsummer night’s dream, reimagining how to position for seismic changes in the geo-economic landscape.

Optimism that pragmatism will ultimately prevail despite the US tariff unpredictability sparked a rally in risk assets, as the S&P 500 and Nasdaq indices broadly recovered close to levels at the beginning of the year. As the July deadline for the 90-day tariff reprieve draws closer, we expect elevated volatility as the US engages in bilateral negotiations with global trade counterparts.

As we head into the summer months, we highlight the potential risks ahead and how investors ought to react in preparation. Here are some hot spots.