US President Donald Trump’s aggressive tariff policies have redrawn the map of the global economy, sending stocks on an unpredictable ride over the last few months. However, market strategists say that while the market volatility triggered by a trade war with dozens of countries may be concerning, investors should stay invested.
Prices are always set to provide positive expected returns, according to Wes Crill, senior client solutions director and vice president at Dimensional Fund Advisors. Even while the news headlines may be concerning, investors have good reasons to stay invested.
Market strategist Callie Cox notes that tariffs have made this investing environment very tricky, but there are lots of opportunities if you’re willing to look for them. The effective tariff rate is estimated to rise to about 17% — from 2.3% last year — after tariffs Trump proposed last week on a swath of countries.
In contrast, the S&P 500 has risen over 12% since April, as reciprocal tariffs went into effect on Thursday without significantly impacting the market by midday. Certified financial planner Douglas Boneparth says that patience often trumps panic and reinforces a timeless investing principle.
Investors can target their investments by using exchange-traded funds (ETFs), which allow them to adjust exposure to entire sectors, regions or supply chains in a single trade. Many of the best-performing ETFs since early April have been focused on cryptocurrencies, nuclear energy, and other sectors less directly impacted by tariffs.
Market strategist Cox notes that tech and financial sectors stand to benefit from the uncertainty, while technology, consumer discretionary, materials, and industrials are among the investment sectors broadly poised for a negative tariff impact. The Trump administration has exempted many consumer tech products from tariffs, insulating the sector to some extent.
Beyond tariffs, investors should consider their impact alongside other Trump administration policies, such as changes in tax and spending packages that may prove financially beneficial for many companies.
Source: https://www.cnbc.com/2025/08/07/trump-tariffs-investors.html