7 April 2025
If you are covering the continued stock market turmoil, please see comments below from Stuart Clark, portfolio manager of Quilter’s WealthSelect managed portfolio service:
“Today marks a very messy start to the week, with the stock market experiencing significant falls. This downturn comes amid a lack of positive news on tariffs, which has left investors uncertain and cautious.
“The outlook for earnings has considerably weakened, and sentiment has followed suit. However, the market's weighing mechanism has begun to adjust via valuations. The key question now is whether we will overshoot equilibrium in this process.
“Given the current environment, it still feels too early to be adding risk into our portfolios. We are closely monitoring the potential size and duration of these tariffs, as well as any countermeasures that may be imposed. Until we have a clearer understanding, we believe it is prudent to maintain a cautious approach. While it is possible, and even probable, that we will see rallies within this downtrend, our focus remains on identifying the underlying opportunities amidst the broader market noise.
“Our slight risk-off positioning in equity has proven beneficial for relative performance, complemented by our holdings in precious metals and quality value strategies. Specifically, the Redwheel Global Income fund has performed well due to its combination of quality holdings and an underweight position in the US market. While it does have some exposure to tariff risk, it is not as significant as that of the broader global equity market. Additionally, our investments in precious metals have held up well, although we anticipate some volatility as these assets may be used as a source of liquidity for margin calls on other parts of portfolios.
“We will continue to assess developments and adjust our positions as necessary to protect capital and exploit opportunities when they arise.”
