Portfolio update

It may at times seem contradictory that your financial planner talks about not watching your portfolio too often, yet we still issue regular Insight updates with performance graphs. Through the current period of stock market disquiet, after the imposition of tariffs by President Trump, we have sent investment updates slightly more frequently.

We know our clients react differently to the news and some clients, perhaps those who have not been invested with us for long, may want to see evidence that we are monitoring the current period of volatility. The message is one of reassurance and ultimately, if you have questions related to your individual circumstances, your financial planner is available to help you.

We’ve been here before.

If we go back to 2018, the first Trump administration’s tariffs on China sparked a trade war that panicked markets and dominated the news, much like today. What’s more, two US government shutdowns, challenging Brexit negotiations and a contentious midterm election further stoked market pessimism. How did stocks react? Fears that a trade war between the two largest economies would lead to a global slowdown sent global equities down 3.49% in 2018, falling sharply in the final quarter that year.

World equity performance in 2018

World equity performance in 2019

As the chart shows, the index recovered sharply in 2019, up over 20%, as trade deals were announced and consumer spending steadied.

Will market choppiness in 2025 give way to smoother sailing in 2026? There is no way to tell, but next year’s midterm elections in the US could shift the Trump administration’s focus to trade deals and more ‘bread and butter’ issues that add economic optimism rather than uncertainty.

Performance of our Standard portfolios over the last year (up to Friday 2 May)

After the sharp stock market falls through February and March there has been some respite in April as President Trump has entered into negotiations on his tariffs. Consequently, we have seen an improvement in portfolio performance such that all portfolios over the course of the last year are showing positive returns.

Performance of our Values portfolios over the last year (up to Friday 2 May)

Performance in the Values portfolios has been similar.

Please contact your Old Mill financial planner if you would like to discuss the performance of your portfolio.