Tariff mayhem: Alex Jamieson urges calm amid market volatility

Leading financial advisor and founder of AJ Financial Planning, Alex Jamieson, is urging investors to take a measured approach amid global stock market volatility driven by escalating tariff disputes.
 

With international trade tensions at an all-time high, markets across the globe including Australia are experiencing heightened uncertainty. Governments imposing new tariffs and retaliatory measures are disrupting supply chains, driving up costs and impacting corporate earnings. As a result, investor confidence is wavering, leading to market fluctuations.
 

"Whenever global economies engage in tariff battles, markets react with volatility. We are seeing uncertainty ripple through industries, affecting everything from commodities to technology stocks," Jamieson said.
 

"But this is not the time to panic. Long-term investors should take a strategic approach rather than reacting emotionally to short-term market movements.
 

"Where there is blood on the streets including your own, this is always a good time to consider scooping up opportunities, not selling in panic. Selling in panic only lifts other people's portfolios and kills your own."
 

Jamieson is encouraging Australians to stay calm and understand that history shows markets will settle and continue to move up, albeit not necessarily in a straight line. He explains why stock markets are being impacted globally and in Australia.
 

Rising trade tensions

"Ongoing tariff disputes between major economies, such as the US and China, are increasing costs for businesses and consumers, leading to reduced corporate profits and slower economic growth," Jamieson said.
 

"This is creating uncertainty, but companies and markets are resilient and they will find a way to manage things moving forward."
 

Supply chain disruptions

"Global supply chains are being restructured as businesses attempt to mitigate the impact of tariffs, causing temporary instability in stock prices," Jamieson said.
 

"This is completely normal and involves periods of market movement."

Market uncertainty and investor sentiment

"Uncertainty over future trade policies leads to cautious investor behaviour, contributing to market sell-offs and increased volatility," Jamieson said.
 

"This is understandable and expected. After all, markets are driven by people. People, companies and markets quickly adapt and keep moving to ensure stability and consideration for volatility and the navigation of issues and contingencies."
 

Commodity and currency fluctuations

"Tariffs on key resources impact commodity prices, while currency markets react to shifts in global trade dynamics, further affecting stock performance. This is normal," Jamieson said.
 

Interest rate and inflation pressures

"Higher import costs due to tariffs can drive inflation, influencing central bank decisions on interest rates, which in turn impact stock valuations," Jamieson said.
 

"Years of market history provide good insight into how they will react and move. While some scenarios may be very similar, the outcomes won't be identical but they will often rhyme."
 

Jamieson's advice to investors is simple.

"Stay calm and avoid knee-jerk reactions. Market volatility is often temporary. Selling in a downturn can lead to unnecessary losses, while patient investors tend to see recovery over time," Jamieson said.
 

"Seek professional guidance. Often, market volatility is a good opportunity to reach out to a financial planner. A good advisor can help you to capitalise on market fluctuations and opportunities arising from tariff driven disruptions.
 

"A well-balanced mix of assets across different sectors and regions can help reduce risk exposure to specific market downturns. Always focus on quality investments. Companies with strong fundamentals, stable earnings and long-term growth prospects are better positioned to weather market uncertainty.
 

"If volatility is uncomfortable, then reassess your risk tolerance. Investors should review their financial goals and risk appetite, ensuring their portfolios align with their long-term objectives."
 

Jamieson emphasised that history has shown that markets recover from trade-related shocks. The key for investors is to remain informed, stay diversified and think long term.
 

About Alex Jamieson
 
Alex Jamieson is the founder of Melbourne-based advisory firm, AJ Financial Planning. With a firm belief in responsible investing, Alex crafts investment portfolios for clients that not only meet their financial objectives but are also sustainable and match their ethical values.
 
A highly respected financial advisor, Alex is considered one of the country's leading experts on all matters financial planning, investing and retirement.
 
http://www.ajfp.com.au/