Market Quote: More On Tariffs, More on Volatility
Author: The editor's desk
April 11, 2025
A weekly analysis of what’s happening in global financial markets from the perspective of AGF’s investment management team.
One Man Show
The moves that we’ve experienced in global equity markets over the past week are reminiscent of some of the most volatile periods in recent history including the pandemic of 2020 and the Global Financial Crisis of 2007 and 2008. But unlike those crises, the current turmoil is being inflicted on investors by the decisions of one man, the U.S. President, and those in his inner circle who continue to champion the administration’s troublesome new trade policy on his behalf.
Wednesday’s announcement that “reciprocal” U.S. tariffs on goods from dozens of countries and regions would be postponed for 90 days came as a big initial sigh of relief for investors, but equity and bond markets around the world remain extremely volatile, particularly as it appears the U.S. administration is now zeroing in on China as its main target for disrupting global trade relations. At last count, both countries have implemented retaliatory tariffs on each other in excess of 100% and it’s plausible to see tensions ratchet up further in the days ahead.
Ultimately, we believe global financial markets will find their footing again – just as they have every other time in history that there was a significant correction or bear market. But this may take more time, and it isn’t likely to occur until investors are granted more clarity on the U.S. administration’s true intent regarding tariffs and can legitimately analyze their potential impact on global economic growth and corporate earnings.
Bee-ware
Washington was buzzing this week, as Trump critics claimed that the president and his inner circle manipulated the markets. Trump, after all, was urging investors to buy stock just before the Wednesday rally began. Democrats said they will hold hearings on the stock market chaos, and would subpoena trading records and phone records.
Our bottom line is that most politicians want to run away from this issue of trade protectionism, which is associated with the stock market plunge and fears of recession.
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AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.
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