In his latest announcement, President Trump stated that he would impose a 25% tariff on imports from Canada and Mexico, as well as an additional 10% tariff on imports from China, effective March 4.
Given the potential for increased volatility in U.S. equities, investors who wish to mitigate the risk of a short-term market correction may want to consider purchasing protective put options while prices remain relatively attractive. Alternatively, they could increase their exposure to safe havens such as U.S. Treasuries.
Over the long term, we believe that the U.S. equity bull market is still intact, supported by favourable factors such as Trump’s pro-growth policies, ample liquidity in the financial system, rising productivity, and advancements in AI technology.
To learn more about the implications of Trump’s policies, be sure to listen to the latest episode of the "Outlook in Five" podcast featuring our Chief Investment Strategist, Eli Lee.
