This evening, President of the United States Donald Trump announced a wave of new global tariffs.
From the baseline universal 10% tariff for the UK and some others to 20% for the EU and over 30% on China and Taiwan, no countries were spared in what Trump described as ‘one of the most important days in US history’.
Here’s how markets have reacted, what it means for investors, and three fund ideas to help navigate stock market uncertainty.
This article isn’t personal advice. Remember, investments and any income from them can rise and fall in value, so you could get back less than you invest. Yields are variable and not a reliable indicator of future income. Tax rules can change, and benefits depend on individual circumstances. If you’re not sure if an investment’s right for you, ask for financial advice.
What do Trump’s new tariffs mean for investors?
As Trump has ripped up trade norms, so far, it’s spread fresh worries about the implication for the global economy.
Futures trades indicate a sharp drop for the S&P 500 with other indices around the world also looking set for falls.
The UK might appear to have been dealt a better hand compared to some nations, but given it’s so intertwined with the global economy, a drag on growth looks inevitable.
The UK government is taking a pragmatic approach, and hoping for a trade deal, which could help alleviate more of the tariff burden, however the outcome is uncertain.
Although there will be some hopes that now more detail about the widely trailed tariff plan is out in the open, it will provide more clarity for economic forecasts, business strategy and investment decisions.
However, it’s still unclear to what extent other countries might retaliate with tariffs, and how the trade war could still escalate.
There’s also a lack of certainty as to what the damage to consumer sentiment and growth prospects could be, both in the US and the global economy.
And given Trump’s record of changing policy seemingly on the hoof, there’s still the potential for further upset to come and that means market movements are likely to stay in a zig-zag pattern.
Gold prices have also been creeping up again today, and they could climb higher as fear spreads about potential knock-on effects of the US trade policy.
What can investors do?
During times of stock market volatility, it’s important for investors to keep an eye on the long term.
Investors should make sure they’re well diversified, without too much invested in any one area, and with money spread across different asset classes and geographies.
Time in the market and diversification have consistently been the foundations of successful investing strategies and that isn’t going to change no matter how much market noise there is.
If you’re looking for investment ideas to diversify your portfolio and help navigate market volatility, here are three fund ideas.
3 fund ideas to navigate stock market uncertainty
Investing in these funds isn’t right for everyone. Investors should only invest if the fund’s objectives are aligned with their own, and there’s a specific need for the type of investment being made. Investors should understand the specific risks of a fund before they invest, and make sure any new investment forms part of a diversified portfolio.
For more details on each fund and its risks, use the links to their factsheets and key investor information.
Troy Trojan
In times of uncertainty one investment which has tended to do well, and to effectively diversify your portfolio, is gold.
The current uncertain outlook, combined with increased buying from central banks, particularly in emerging markets, means that the commodity could continue to enjoy support – although we don’t necessarily expect it to keep going up at the pace it did in 2024.
The managers of the Troy Trojan fund manage to take advantage of the attributes of gold without putting all their eggs in one basket.
Rather than trying to shoot the lights out, the fund aims to grow investors' money steadily over the long run, while limiting losses when markets fall.
The fund is focused around four 'pillars'.
The first contains large, established companies the managers think can grow sustainably over the long run. These sorts of companies often outperform the broader market during difficult times.
The second is made from bonds, including US index-linked bonds, which could shelter investors if inflation rises.
The third pillar consists of gold-related investments, including physical gold, which has often acted as a safe haven during times of uncertainty.
The final pillar is ‘cash’. This provides some shelter when markets stumble, but also a chance to invest in other assets quickly when opportunities arise.
While the fund contains a diverse range of investments, it’s concentrated. This approach means each investment can contribute significantly to overall returns, but it can increase risk. The fund can also invest in smaller companies which can increase risk.
Ninety One Diversified Income
If you’re looking for a lower-risk option which provides an income, you could consider an income-focused mixed asset fund like the Ninety One Diversified Income fund.
We classify this fund as a total return fund and consider it to be a step up in risk from cash.
Total return funds are more conservative than funds that invest fully in company shares and aim to shelter your money when stock markets fall. They can be valuable if you’re worried about seeing the value of your investments decline.
Remember though, nothing is guaranteed, and these funds can still lose money, particularly over shorter time periods.
The Ninety One Diversified Income fund focuses on providing income mainly through investing in bonds, with a smaller part of the fund invested in shares.
It’s been managed by the very experienced John Stopford since 2012 and his co-manager, Jason Borbora-Sheen, started working on the fund alongside Stopford in 2015.
Over the long term we expect most of the overall returns to come from the income provided.
At the end of February, the fund was yielding 5.02%.
The fund takes charges from capital which can increase the amount of income paid, but reduce the potential for capital growth. The fund invests in emerging markets, high yield bonds and uses derivatives, all of which add risk.
Fidelity Global Dividend
For a portfolio looking to invest in shares, but worried about volatility and would prefer an option to help weather the rougher times, an equity income strategy could work well.
These funds tend to invest in more mature companies paying a reliable dividend, and which are robust enough to continue doing so through more difficult environments.
The Fidelity Global Dividend fund is a good option in this space.
The fund’s manager, Daniel Roberts, favours companies with simple business models, sensible management teams and healthy balance sheets that should be able to grow their dividends over time. He looks for good quality companies and tries to buy them at decent prices.
Over the long term, Roberts has delivered strong results. He's achieved this while investing fairly conservatively. So, while the fund’s usually not quite kept up when markets have risen, it has held up much better when they've fallen. There are no guarantees this performance will continue.
The fund takes charges from capital, which can increase the income paid, but reduce the potential for capital growth. The fund can invest in emerging markets, smaller companies and use derivatives, all of which add risk.
March 2020 To March 2021 | March 2021 To March 2022 | March 2022 To March 2023 | March 2023 To March 2024 | March 2024 To March 2025 | |
|---|---|---|---|---|---|
Fidelity Global Dividend | 21.41% | 8.07% | 4.75% | 12.32% | 11.44% |
IA Global Equity Income | 32.40% | 11.90% | 2.23% | 13.49% | 4.67% |
Ninety One Diversified Income | 14.22% | -1.32% | -1.31% | 4.20% | 4.71% |
IA Mixed Investment 0-35% shares | 12.24% | -0.13% | -5.97% | 5.88% | 3.42% |
Feb 2020 To Feb 2021 | Feb 2021 To Feb 2022 | Feb 2022 To Feb 2023 | Feb 2023 To Feb 2024 | Feb 2024 To Feb 2025 | |
|---|---|---|---|---|---|
Troy Trojan | 5.37% | 12.80% | -2.37% | 3.25% | 9.26% |
UK Retail Prices Index (RPI) | 1.37% | 8.18% | 13.84% | 4.53% | 3.41% |
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Article image credit: Andrew Harnik / Getty Images.
