Managing Through Tariff Market Madness: How Hoxton Wealth Are Managing Your Assets

The recent turmoil in markets has been triggered by the sudden escalation of trade tensions—what we’re calling the "tariff tantrum." This has brought back memories of past market shocks, like the COVID-19 crash in 2020 or the financial crisis in 2008.

Much of the current stress is due to political decisions, particularly from the United States, where aggressive tariffs on imports are being met with similar measures from countries like China. These back-and-forth moves are rattling investors and creating fear that this could spiral into a full-blown trade war.

When that fear spreads, people start selling off their investments—fast. That causes stock prices to fall, even for solid companies. And when markets fall too quickly, it can trigger something called “margin calls,” which force some large investors to sell even more, making things worse.

We have compiled a full webinar and article here to give you further information: Watch it here

While all of this sounds dramatic, the most important thing you can do as an investor is avoid panic. That’s exactly how we’re managing your portfolio—calmly, but with purpose.

Our investment team, led by Omer Chowdhury our Moderate and Adventurous fund manager, is not just sitting back and watching.

Omer and his team have been making fast, smart changes to protect your assets. For example, early in the year, before this sell-off really started, we were already cautious. We reduced our exposure to high-risk areas like U.S. tech stocks and moved some of that money into more stable regions like Europe and China.

We also added more gold to the portfolios—around 9%. Gold has historically been a safe haven in uncertain times, and central banks have been buying it in large amounts, helping to push prices up. That’s helped balance out some of the losses from equities.

In addition, we’ve moved some capital into safer government bonds and short-term “liquidity” funds—these are like cash but can earn a small return with very low risk. This flexibility means we can adjust quickly, whether things get better or worse.

If you're wondering what we mean by “overweight” or “underweight” in your portfolio, here’s a simple explanation:

We compare our investment strategies to standard benchmarks. For example, a typical “adventurous” fund might be 75% in stocks and 25% in bonds. If we hold less than 75% in stocks, we’re “underweight” equities. It’s a way of saying we’re playing defense—reducing risk when the market looks shaky.

Right now, we’ve been holding slightly less in stocks than usual to help cushion the blow of recent market declines. When markets fall 20% or more, like they have recently, that underweight position helps protect your portfolio.

We often get asked: “Why not just sell everything and wait until things get better?” That’s a natural reaction, but it’s usually the wrong move. Selling in a panic locks in your losses, and it’s nearly impossible to predict the right time to buy back in.

Instead, we believe in staying invested with a clear strategy. Markets go through cycles. Volatility—those sharp ups and downs—is part of the ride. But it’s also where opportunity lives. Our job is to manage that ride for you, adjusting when needed, without making rash decisions.

Even when everything feels uncertain, we’ve never once suggested moving entirely to cash. That’s not investing—it’s hiding.

While we’re cautious now, that doesn’t mean we’ll stay on the sidelines forever. In fact, we’ve already been adjusting positions to avoid being caught out when markets bounce back. For example, if stocks fall 20%, they can rebound by 10% or more very quickly. So we’ve made sure we’re not too far underweight, just in case.

We’re watching for signals—like signs that the trade war may ease, or that markets have priced in all the bad news. When we believe the worst is over, we’ll start gradually increasing equity positions. Not all at once, but step-by-step, with care.

As Omer says, “You never catch the exact bottom. But even if you’re within 5–7% of it, that’s still a great long-term entry point.”

This kind of market volatility is uncomfortable, but it’s not new. We’ve been here before, and we’ll be here again. What matters most is how your portfolio is managed during these times—and at Hoxton Wealth, we’re more active than ever.

Behind the scenes, our team is adjusting positions daily, seeking the best opportunities, and avoiding unnecessary risks. You might not see these changes in your portal every day as the changes are going on "under the hood" of the fund, but rest assured, your investments are being watched over and managed with discipline.

If you have questions or need reassurance, reach out to your advisor or contact our client service team directly who will only be too happy to help: client.services@hoxtonwealth.com 

We’re here to guide you through the madness—and out the other side.