Global markets are experiencing significant turmoil as Q1 2025 ends, primarily driven by President Trump’s expanding trade war policies and growing fears of stagflation.
Investors are moving toward safer assets, with U.S. government bonds rising 2.6% year-to-date and gold reaching record highs.
Trump’s April 2nd announcement of plans to target “all countries” with reciprocal duties has heightened concerns, while recent economic data showing weakened consumer sentiment and spending alongside rising prices has increased worries about a possible recession.
While some investors reduce risk exposure, others stand ready to re-enter markets if tariff details prove less severe than anticipated.