{"id":35003,"date":"2025-08-07T16:21:11","date_gmt":"2025-08-07T16:21:11","guid":{"rendered":"https:\/\/financialrush.com\/?p=35003"},"modified":"2025-08-07T16:21:11","modified_gmt":"2025-08-07T16:21:11","slug":"trump-tariffs-offer-opportunities-for-investors-market-strategist","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=35003","title":{"rendered":"Trump tariffs offer ‘opportunities’ for investors: market strategist"},"content":{"rendered":"

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Gantry cranes above a container ship.<\/p>\n

Shaunl | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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President Donald Trump<\/a>\u2018s tariffs have redrawn the map of the global economy<\/a> \u2014\u00a0sending stocks on an unpredictable ride over the last few months<\/a>.<\/p>\n

On Thursday, many trading partners<\/a> were hit with \u201creciprocal\u201d tariffs on their exports to the U.S. Trump also announced late Wednesday that he will impose a 100% tariff <\/a>on imported semiconductor chips, with an exception for companies that are \u201cbuilding in the United States.\u201d<\/p>\n

Most investors would benefit from tuning out the market volatility triggered by a trade war with dozens of countries, financial advisors say. History shows that the stock market is remarkably resilient<\/a>, and offers handsome returns to those who take a long view.<\/p>\n

\u201cInvestor uncertainty escalated amid the initial developments of tariffs,\u201d said Wes Crill, senior client solutions director and vice president at Dimensional Fund Advisors.<\/p>\n

\u201c[E]ven while the news headlines may be concerning, investors have good reasons to stay invested,\u201d Crill said. \u201cPrices are always set to provide positive expected returns.\u201d<\/p>\n<\/div>\n

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More from ETF Strategist:<\/h2>\n
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Here\u2019s a look at other stories offering insight on ETFs for investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Still, there are also some tactical moves investors can take in this environment if they don\u2019t want to just sit tight and stay the course, market strategists say.<\/p>\n

\u201cTariffs have made this investing environment very tricky,\u201d said Callie Cox, chief market strategist at Ritholtz Wealth Management.<\/p>\n

\u201c[But] there are lots of opportunities if you\u2019re willing to look for them.\u201d<\/p>\n<\/div>\n

S&P 500 up 12% since Trump\u2019s \u2018Liberation Day\u2019<\/h2>\n
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Trump has announced and rescinded a flurry of actions around tariff policy since his so-called \u201cLiberation Day\u201d on April 2.<\/p>\n

The U.S. effective tariff rate is estimated to rise to about 17% \u2014 from 2.3% last year \u2014 after tariffs Trump proposed<\/a> last week on a swath of countries, Stephen Brown, deputy chief North America economist at Capital Economics, wrote in an Aug. 1 research note.<\/p>\n<\/div>\n

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Patience often trumps panic.<\/p>\n

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Douglas Boneparth<\/p>\n

certified financial planner<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n

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Those so-called \u201creciprocal tariffs\u201d come on top of others, like duties placed on automobiles, steel, aluminum and copper, for example. A 17% effective rate would be the highest since the 1930s, Brown wrote.<\/p>\n

But the stock market is still chugging along. Between the start of April and early August, the S&P 500 rose over 12%, according to Morningstar Direct. As reciprocal tariffs went into effect on Thursday, the market was little changed<\/a> by midday.<\/p>\n

That uptick \u201creinforces a timeless investing principle,\u201d said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.<\/p>\n

\u201cPatience often trumps panic,\u201d said Boneparth,\u00a0a member of the\u00a0CNBC Financial Advisor Council<\/a>.<\/p>\n<\/div>\n

ETFs can help target investing amid tariffs<\/h2>\n
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For investors who want to try to allocate their money in a strategic way amid the era of tariffs, exchange-traded funds, or ETFs, may be one place to look, said Andrew Hiesinger<\/a>, founder and CEO of Quant Data, a market information platform.<\/p>\n

\u201cETFs let investors adjust exposure to entire sectors, regions or supply chains in a single trade,\u201d Hiesinger<\/a> said.<\/p>\n

\u201cWhen tariffs disrupt global markets, this flexibility can help smooth out risk compared to holding individual stocks that may be directly impacted by a single policy change,\u201d he added.<\/p>\n

Many of the best-performing ETFs since early April have been focused on cryptocurrencies, an analysis by Morningstar Direct found.<\/p>\n<\/div>\n

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\u201cCryptocurrency ETFs have gained momentum because digital assets are not directly impacted by tariffs on physical goods,\u201d Hiesinger said.<\/p>\n

\u201cBroader trade uncertainty can also drive investors toward crypto as a perceived hedge against geopolitical and currency risks.\u201d<\/p>\n

Meanwhile, nuclear energy ETFs have benefited from a growing demand for stable power sources and policy support, Hiesinger said.<\/p>\n

\u201cTariffs on other energy inputs or technology components can indirectly make nuclear power more attractive,\u201d he added.<\/p>\n<\/div>\n

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There is no single rule for how much of their portfolio investors should allocate to ETFs, Hiesinger said.<\/p>\n

\u201cThe key is ensuring the position fits within their overall risk tolerance and broader portfolio strategy, rather than a fixed percentage or amount they can afford to lose,\u201d he said.<\/p>\n<\/div>\n

Tech and financial sectors stand to benefit<\/h2>\n
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Among the challenges for investors is the whipsawing nature of the Trump administration\u2019s tariff policy, experts said.<\/p>\n

But tactical traders looking to pinpoint investment opportunities over a time frame of weeks or months \u2014 compared to the multiyear or multidecade time frames of long-term investors \u2014 \u201cshine\u201d in such a fast-moving, volatile environment, Ritholtz Wealth Management\u2019s Cox said.<\/p>\n

Technology, consumer discretionary, materials and industrials are among the investment sectors broadly poised for a negative tariff impact, Cox said. The consumer discretionary spending category encompasses<\/a> retailers that sell good and services such as appliances, toys, electronics and apparel \u2014 many of which are manufactured overseas.<\/p>\n

Meanwhile, the industrials sector includes transportation and logistics firms such as UPS<\/a>