Market Update and Rationale
On April 9, 2025, U.S. President Donald Trump announced a 90-day suspension of the recently implemented “reciprocal” tariffs, reducing them to a uniform 10% for most countries. However, tariffs on Chinese imports were increased to 125% due to China’s perceived lack of respect for global markets. This policy shift led to a significant surge in global financial markets, with the S&P 500 climbing 9.5%—its best session since 2008—and the Nasdaq jumping 12.2%.
Despite this market rebound, concerns about a potential global recession persist, especially given the escalating trade tensions between the U.S. and China. China retaliated by imposing an 84% tariff on U.S. goods, further intensifying the trade dispute.
Trade Plan
Portfolio: ETF Elite Portfolio
Security: VanEck Global Listed Private Equity ETF (GPEQ)
Action: Sell 5% of the current GPEQ position
Dollar Cost Averaging and Long-Term Perspective
The webinar stressed the importance of adopting a long-term perspective and employing strategies like dollar cost averaging. This approach involves investing a fixed amount of money at regular intervals, regardless of market conditions, to reduce the impact of volatility.
Historical data was cited to illustrate that markets often recover over time. For instance, following significant downturns, such as the COVID-19 pandemic and the Global Financial Crisis, markets have typically rebounded strongly. The team suggested that investors should focus on historical averages and not be deterred by short-term fluctuations.
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.