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The past few days have been marked by an intensification of volatility in financial markets, notably due to the announcement of massive trade tariffs in the United States. This situation, though concerning from a media perspective, must be put into context. It is largely artificial and highly politicized, fueled by strategic maneuvers whose deeper intentions are not always clear.
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1. A largely artificial volatility, orchestrated by an unpredictable president
As billionaire fund manager Bill Ackman mentioned, while President Trump raises a real issue—correcting an asymmetrical international trade system—the dramatic way in which he acts raises serious concerns. Ackman summarizes the situation perfectly:
“This is not what we voted for. The president has the opportunity to call for a timeout to correct an unfair system. Otherwise, we are heading toward a self-inflicted economic nuclear winter.”
But beware: Donald Trump is a political "showman" who masters the art of creating media shockwaves. He can, at any moment, change his tone, announce a truce, or reverse course, triggering a swift surge in confidence. Ignoring this possibility would be a major strategic mistake.
This is why it’s important not to be trapped by the panic of the moment. The current dynamic, as dramatic as it may appear on the surface, could shift after just a single declaration or social media message from the president. And those who remain invested will be the first to benefit from a rapid turnaround.
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2. Our strategy: buying quality at discounted prices
In this context, we reiterate our stance: we are buyers, not sellers. We target strong, profitable, well-capitalized companies trading at undervalued levels due to prevailing fear. These companies will weather the storm and deliver sustained long-term growth.
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3. Strategic opportunities in technology and AI
The technology sector, particularly artificial intelligence, represents one of the most powerful growth drivers of the coming years. Several high-quality stocks are currently trading at deep discounts. For us, this represents a strategic moment to increase exposure to these future-oriented segments.
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4. Staying positioned to avoid missing the rebound
History clearly shows that markets often rebound sharply and without warning. A swift rally in the coming days is entirely plausible, particularly given that the current declines are largely tied to temporary political tensions. Missing this type of movement can significantly impact long-term portfolio performance.
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5. Rebalancing and active management
We proactively adjust portfolios to capture the best opportunities, while maintaining diversification consistent with your objectives. Targeted rebalancing can enhance long-term returns, especially following a corrective episode.
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6. Anticipate your needs and inform us of any changes
If you have short- or medium-term projects, or if your financial situation changes, please inform us promptly. This will allow us to better tailor your investment strategy and protect you should liquidity needs arise.
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7. The economy remains robust and results are coming
Despite stock market shocks, economic fundamentals remain strong. The first-quarter 2025 earnings season begins this week and will offer us a more factual reading of corporate performance. We are closely monitoring this data.
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Final Word
The current storm is spectacular but largely media-driven and political. It could dissipate as quickly as it appeared. The American president is capable of strategic pivots that can rapidly transform the economic landscape and rekindle confidence.
We remain vigilant but confident. Our role is to stay the course, remain disciplined, and position your portfolios for future growth.
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