Markets rebounded in April as volatility eased. Flexible investing remains key amid Trump policy shifts and global trade uncertainty.
Financial markets made a solid recovery through April after the tumultuous months of February and March. With Donald Trump reaching his 100th day in office during the month, the extent of market dislocation on the back of an erratic policy framework over the period cannot be underestimated. While global equities continued to track slightly lower over the month, the overall level of volatility moderated through the back end of the month. While the ‘soft’ economic data out of the US remains challenging the ‘hard’ data has been less negative. Accordingly, should the US and China, alongside the US’ other key trading partners (i.e. Japan, Canada, Mexico, Sth Korea) agree on revised trade agreements, markets could continue to maintain some level of positive momentum in the near term. Overall, the need to maintain a flexible investment and asset allocation framework remains an important construct given the current financial, macro and geopolitical backdrop.
