Welcome to Hoxton Wealth, the new home of Hoxton Capital
Tariff Drama Hits Markets Again: Don’t Let the Headlines Shake Your Investing Plan
Hoxton Blog • Tariff Drama Hits Markets Again: Don’t Let the Headlines Shake Your Investing Plan
On Friday, markets reacted sharply after U.S. President Donald Trump announced plans to impose new tariffs on China.
News emerged that the U.S. President had threatened to hit China with 100% tariffs in retaliation for Beijing’s export restrictions on rare earth minerals crucial to the semiconductor industry.
Stocks dipped almost instantly, headlines screamed “market turmoil,” and social media was full of predictions about an economic crash.
For many newer investors, it’s natural to feel uneasy when you see the value of your investments drop in a single day. But here’s an important truth – short-term news often creates short-term noise. What matters far more is what you do next.
As the saying goes: Bad investors panic sell, good investors do nothing, and great investors take action.
Markets Bounce Back – And Often Quickly
Let’s look back just a bit:
- August 2025: Global stock markets fell after weak manufacturing data suggested a slowdown. Within two weeks, most indexes recovered fully. Panic sellers missed a rebound of over 5% in the S&P 500.
- April 2025: Liberation day, market recovered within a month after President Trump announced tariffs.
- January 2025: A sudden tech sector sell-off saw Nasdaq drop nearly 4% in two days due to disappointing chip-maker earnings. By February, it had regained all lost ground.
- October 2024: Geopolitical tensions in Eastern Europe pushed European stocks down sharply. Within three weeks, they recovered beyond prior levels as companies reported strong earnings.
- March 2024: A brief banking scare rocked markets when a mid-sized U.S. bank faced liquidity trouble. The S&P 500 fell 3% in a single day, only to rebound in less than a week when the issue was contained.
These examples show one pattern – short-term dips tend to be followed by recoveries much faster than most expect. Investors who react emotionally often miss out on the sharpest part of that rebound.
The Cost of Panic Selling
Imagine you sold during last August’s dip. If you stayed out of the market until things “looked safer,” you would have missed the quick bounce and locked in your losses.
Many studies show that missing just the 10 best trading days in a decade can cut your long-term returns in half.
That’s the trap: fear pulls you out, relief returns after prices have already recovered, and the gap between those two emotions becomes permanent underperformance.
Markets rarely send a clear all-clear signal; the strongest up days often arrive when headlines still feel bleak. Step aside for even a short stretch and you risk sitting out a big portion of the recovery.
This is why experienced investors stick to the principle: time in the market matters more than timing the market.
Staying invested captures the full cycle – sell-offs, rebounds, and the quiet compounding in between. It doesn’t mean ignoring risk; it means managing it without abandoning your plan.
Seeing the Bigger Picture
Short-term headlines are like weather forecasts – they can change suddenly. But investing is more like planting a tree. You don’t dig it up every time there’s a storm; you let it grow.
So, when the market dips because of tariff news – or any news – ask yourself:
- Has the value of the companies you hold fundamentally changed?
- Is this a temporary storm or a lasting shift?
- Are you letting fear drive your decisions?
The Action Plan for Smart Investors
- Stay Invested – History shows recovery often starts when fear is highest.
- Review Your Goals – Your investments should match your long-term objectives, not last week’s headlines.
- Consider Opportunities – Great investors often see dips as chances to buy quality assets at discounted prices.
If you’d like to discuss your portfolio, review your long-term plan, or simply seek reassurance during uncertain times, reach out to our client services team at client.services@hoxtonwealth.com or through our global WhatsApp line at +44 7384 100200.
Remember that every market correction in history has eventually ended with markets reaching new highs. The noise will pass – but your long-term plan should remain steady.
How Can We Help You?
If you would like to speak to one of our advisers, please get in touch today.
Contact Hoxton Wealth
Contact us today to discover how Hoxton Wealth can help you achieve your financial goals. Together, we can build a brighter financial future.
