Despite these concerns and increased market volatility, nearly half of the surveyed investors (47%) have opted not to alter their asset allocations. Only about 10% are considering adjustments if instability endures. For those who have changed strategies, many capitalized on the market downturn by expanding their portfolios, while a smaller segment has paused further investments.
Among those adjusting their strategies, 14% have liquidated assets to minimize risk, and 12% have shifted towards more conservative options like cash and bonds. These actions underscore a diverse approach to risk management amid geopolitical and economic uncertainties.
InvestSMART CEO Ron Hodge highlighted investors' awareness of the US tariffs' influence on their investments. He praised the absence of hasty alterations in investment strategies despite the evident anxiety over the 'reciprocal tariff' regime, an initiative by Trump's administration aimed at equalizing trade imbalances.
The invested cohort, characterized largely as 'experienced' (47%), reflects a stoic response to the potential trade-induced market upheavals. Despite numerous global entities, including the EU, enacting retaliatory measures, a significant segment of Australian investors advises against similar responses, with about 75% opposing governmental retaliation.
Opinions on the Australian government's role in mitigating global tariff ramifications are varied, with 33% advising inaction. The investor community is acutely aware of the economic and market risk from potential countermeasures against the US.
Ron Hodge concluded that the fast-evolving trade scenario demands thoughtful navigation, with investors' restrained reactions signaling a need for cautious governmental deliberation.
