As President Donald Trump has continued to roll out tariff policies, the stock markets in the U.S. and around the world have evaporated by over $10 trillion (1,454.9 trillion won) in just one week. Although there are signs of recovery, experts warned that "the crisis is not over." This has increased anxiety among domestic and foreign investors.
On the 10th (local time), Bloomberg reported the advice of asset management experts from around the world, stating, "Don't be swayed by the stock market's ups and downs; hold onto your convictions and keep your positions."
Richard Harris, founder of Hong Kong's Port Shelter Investment, advised, "If you have assets you like, don't sell everything; just reduce your holdings. Now, while prices are lower than a month ago, may actually be an opportunity," adding, "Maintain a defensive stance but don't miss out on risk assets with growth potential." Stephanie Wuen, head of Endowars in Hong Kong, also noted, "If your investment purpose and risk appetite haven't changed, short-term market fluctuations shouldn't shake your investment strategy."
Nick Xiao, head of Anum Capital, advised diversifying and holding assets such as exchange-traded funds (ETFs) that track major indices like the S&P 500 or blue-chip stocks, saying, "However, you need to be mentally prepared to endure market fluctuations." There was also a consensus that caution should be exercised with short-term investments, especially against "debt investment," which should be absolutely avoided.
Experts pointed to European corporations and the travel and leisure sectors as relatively promising areas amid the trade wars. In particular, they viewed Latin American countries as having high growth connectivity with China, potentially presenting investment opportunities.
Conversely, caution was advised for stocks and bonds that excessively rely on external demand or supply chain stability. Xiao stated, "We are reevaluating the outlook for global consumer brands facing supply chain and price chaos, such as those like Apple."
There was also advice to consider holding safe assets like U.S. government bonds, real estate, and gold. Bonds are generally regarded as low-volatility safe assets. A rise in long-term government bond yields indicates confidence in the economy, while a spike in short-term yields has the opposite implication. Therefore, an inversion of short- and long-term rates is regarded as a recession signal.
However, Jason Hsu, founder of Rayliant Global Advisors, noted, "While bonds can be a refuge, yield fluctuations can be very large" and emphasized that "the dual occurrence of economic slowdown due to tariffs and inflation does not guarantee that rate cuts will take place." He viewed real estate as an asset that is relatively less sensitive to tariff shocks.
Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at Natixis, stated, "High tariffs can trigger inflation and even stagflation within the U.S.," emphasizing the importance of tangible assets like gold.