April 2025 Market Update
In this April market update, Chief Investment Officer Brian Andrew, CFA®, examines recent market volatility stemming from evolving U.S. tariff policies. He discusses the potential implications for inflation, interest rates, and broader market dynamics, while highlighting key considerations for navigating an uncertain economic environment.
Key Takeaways:
- Tariffs Spark Historic Market Reaction
- In a shocking turn, the Trump Administration proposed raising effective tariff rates from 3% to as high as 25%, levels not seen in nearly a century. This jolted financial markets, triggered inflation concerns, and pushed many economists to revise their outlook to a potential 2025 recession.
- Global Trade Tensions Highlight the Importance of Adaptability
- With retaliatory measures from major trading partners and shifting trade dynamics, the global economy faces new challenges. These events underscore the importance of maintaining a focus on your well-considered approach, and advisor partnership to long-term financial planning.
- What This Means for Your Investments
- Despite April’s wild ride, including a 15% drop and a 10% rebound in the S&P 500, Brian explains why trying to time the market can be costly, and highlights the importance of diversification during volatile times. Plus, why some small- and mid-cap stocks might be a hidden opportunity.
We hope you find this video both informative and insightful. For any questions, please reach out to your Merit financial advisor.
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