Investors should brace for volatility to remain a defining feature of financial markets until at least September, as a new era of trade disruption, inflation pressures, and global realignments gathers pace.
Markets are still reeling from the deepening fallout of President Donald Trump’s sweeping tariff offensive.
After his aggressive trade moves last week — dubbed Liberation Day by the White House — equities have suffered one of the heaviest beatings in years. Contracts tracking the S&P 500 fell 4.7% on Monday, while the Nasdaq sank 5.2%.
Asian markets endured even deeper losses, with Hong Kong’s Hang Seng index plunging more than 13% — its worst single-day fall this century.
Europe has fared little better, with the Stoxx 600 down 5.7% and Germany’s DAX briefly crashing more than 10% at the open.
This turbulence is not a one-off. It’s an adjustment period that will likely continue through the summer as the global economy absorbs the shock of new tariffs, tightening financial conditions, and heightened political uncertainty.
Meanwhile, bond yields have dropped and haven currencies are strengthening, signalling that investors are recalibrating their expectations for growth, inflation, and risk.
Yet while the headlines are alarming, they are not a call to abandon ship. Quite the opposite. They are a signal that intelligent positioning now could create extraordinary opportunities for investors who are ready to act with clarity and discipline.
When markets are driven by fear, prices often disconnect from fundamentals, creating openings that are invisible during calmer periods.
Already, strong companies with solid earnings, global reach, and pricing power are trading at valuations that would have been unthinkable only weeks ago.
In times like these, patience and selectivity are not luxuries — they’re essential.
Investors must resist the temptation to rush to cash. Although it may feel comforting in the short term, cash is not a shield against the long-term erosive power of inflation. Nor does it offer protection from the opportunity cost of missing sharp recoveries, which often happen when sentiment is still overwhelmingly negative.
Some of the strongest rallies in market history have started just when many believed things would only get worse.
The key now is active management, meaning reviewing portfolios, identifying vulnerabilities, and making strategic adjustments without panic.
It’s about being positioned for volatility rather than being blindsided by it.
There are important shifts to watch. Supply chains are being redrawn at an accelerated pace, meaning that some sectors and geographies could benefit even as others struggle. Domestic-focused businesses may outperform exporters exposed to retaliatory tariffs.
Companies with strong pricing power and low debt levels could prove to be the bedrock of portfolios. Meanwhile, sectors aligned with long-term structural trends — including energy transition, digitization, and healthcare innovation — are likely to remain resilient despite short-term turbulence.
It’s also vital to be globally minded. While the US remains a core engine of global growth, opportunities are emerging elsewhere, especially in regions less entangled in the new trade disputes. Diversification, both by geography and asset class, will be crucial in navigating the months ahead.
One of the major challenges — and opportunities — of this summer is psychological. Volatility tests resolve. It shakes confidence. It challenges assumptions. But it also demands that investors stay committed to long-term goals rather than reacting emotionally to daily swings.
Trump’s comments this week underscore that further market shocks are possible. By insisting that “sometimes you have to take medicine to fix something,” he made clear he is unlikely to pivot away from confrontation, even in the face of rising economic risks.
Investors must, therefore, build resilience into their strategies now, rather than hoping for quick fixes or reversals.
Periods of dislocation are always uncomfortable. They’re also when serious wealth is created for those willing to adjust intelligently and stay invested through the noise. Those waiting for perfect visibility will find that the recovery, when it comes, will move faster than they can react.
This summer is not about sitting back and hoping for calm. It’s about making the necessary adjustments — and preparing not just to survive, but to grow.
Nigel Green is deVere CEO and Founder
Also published on Medium.
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