In this episode, U.S. mid cap equity portfolio manager, Jeff Mo, discusses the market's sharp sell-off following President Trump's announcement of widespread tariffs on nearly all U.S. trading partners. He provides both short and long-term perspectives on potential economic impacts, including reduced business investment and consumer spending, while explaining that Mawer's investment approach during this volatility remains focused on preparation as opposed to prediction.

 

Key Takeaways:

• "Liberation Day" Tariffs - Trump administration announced widespread tariffs (10-40%) on most trading partners, surprising markets with their scope and scale.
• Market & Economic Response - S&P 500 dropped nearly 5% in one day with bond yields falling; concerns about negative impacts on global growth, business investment, and supply chains
• Consumer Sentiment Impact - Potential weakening of consumer spending due to market losses ("wealth effect") and general uncertainty affecting household financial decisions
• Investment Strategy in Volatility - Mawer's investment approach focuses on preparation over prediction, maintaining a portfolio of quality companies while making only marginal adjustments during market turbulence

Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager

Guest: Jeff Mo, CFA, Mawer Portfolio Manager

 

For more details and full transcript visit: https://mawer.com/the-art-of-boring/podcast This episode is available for download anywhere you get your podcasts. --

Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.

 

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