Trade Wars, Tariffs & Timely Perspective

A Global Shock, But Not a Strategy Shift

On April 2nd, dubbed “Liberation Day”, President Trump announced a sweeping new tariff regime. A universal 10% tariff on all imports, alongside steep “reciprocal” duties targeting major trade partners, marks a sharp escalation in trade tensions. China faces a new effective rate of 54% -34% on top of their existing 20%, while the EU, UK, and Japan are also impacted.

Markets responded swiftly. On April 3rd:

• Nasdaq 100 fell by nearly 6%
• S&P 500 dropped close to 5%
• European equities lost around 2%
• Asian markets were mixed, with Vietnam down 6%, Japan 3%, and China relatively flat

Government bonds rallied, the US dollar weakened, and uncertainty, not policy, is now the dominant theme.

Context Matters More Than Headlines

At times like these, it’s easy to get caught up in the noise.
But market movements should be put in context, not taken out of proportion.

Yes, recent volatility is headline-worthy.
But no, this is not a signal to panic, sell, or abandon strategy.

Remember:

• US equities are coming off two years of +20% annual returns
• European markets remain positive year-to-date
• Defensive assets and bonds have done their job in cushioning portfolio

Skybound Portfolios: Designed for Times Like These

Our investment philosophy at Skybound remains anchored in global diversification, disciplined asset allocation, and alignment with each client’s time horizon.

What does this mean in practice?

• Exposure to high-quality global businesses with pricing power
• Allocations to defensive sectors that weather uncertainty
• Diversified bond holdings to reduce portfolio volatility
• A deliberate approach to currency and regional risk

This is not the time for guesswork, it's the time for guidance.

Stay the Course, Stay Intentional

The question every investor should ask today isn’t:

What’s happening in the markets?

It’s:

Does my portfolio still match my long-term goals?

If it does, stay the course.
If it doesn’t, that’s when we reassess, together.

Markets move. Strategies adjust. But your plan should be driven by your life, not today’s headlines.

Final Thoughts

It’s natural to feel uneasy when volatility spikes. But emotional decisions rarely lead to better outcomes. At Skybound, we remain focused, calm, and ready because that’s what real financial leadership looks like.

“Discipline, not drama, defines long-term success.”

We’ll continue monitoring developments and remain on hand to make changes if they are truly needed, not simply because the headlines shout loudest.