How Trump's Trade Policies Are Redefining Portfolio Risk For Investors
April 2025 emerged as a pivotal moment for financial markets, fundamentally reshaping how investors perceive and manage portfolio risk. Marked by unprecedented policy shifts, soaring volatility, and a rare synchronized plunge in stocks and bonds, the month rivaled the chaos of the 2008 global financial crisis and the 2020 COVID-19 crash.
From a historic VIX spike to gold's unexpected resilience, these events exposed vulnerabilities in traditional diversification strategies and hinted at a potential secular shift in global markets. Here's a detailed look at what unfolded, why it mattered, and how it redefined risk for investors moving forward.
The turmoil began on April 2, 2025, dubbed 'Liberation Day,' when President Donald Trump unveiled an ambitious tariff plan with rates as high as 125% on imports from countries like China, as reported by The Associated Press. The proposal, one of the most aggressive trade policies since the Smoot-Hawley Tariff Act of 1930, promised to reshape global trade dynamics.
Volatility surged as Wall Street's 'fear index,' the VIX, soared to levels unseen since the 2008 crisis and 2020 pandemic crash, according to Investopedia, peaking on April 8, 2025. The S&P 500 plummeted 18.9% from its February 2025 high by April 8, while the tech-heavy Nasdaq entered bear market territory, dropping 26.7% from its December 2024 peak by April 7. This rare breakdown in the negative correlation between equities and fixed income upended the risk-mitigation assumptions of diversified portfolios, leaving investors exposed to unprecedented losses.
Compounding the challenge, bonds—typically a safe haven during equity market turmoil—failed to provide relief. The aggressive tariff plan fueled fears of inflation and reduced global demand for U.S. Treasuries, as foreign investors anticipated trade disruptions and higher borrowing costs. This drove yields on the 10-year Treasury note from 4.01% on April 4 to 4.48% by April 11, causing bond prices to plummet and eroding their role as a hedge, before yields settled at 4.23% by April 28.
Why did bonds falter? Foreign governments and central banks, wary of U.S. economic nationalism, appeared to reassess their reliance on U.S. Treasuries. While foreign holdings of U.S. debt rose from $8.527 trillion in January 2025 to $8.817 trillion in February, according to U.S. Treasury Department data, some countries—like China and Russia—accelerated diversification into assets like gold, signaling caution.
Amid the chaos, gold shone as a bright spot. Rallying since November 2024, the precious metal peaked at just over $3,500 on April 22. Driven by demand from institutional investors and central banks, gold's rally underscored its value as a non-correlated asset that thrives amid geopolitical and economic uncertainty. For portfolios battered by stock and bond losses, gold offered a critical hedge, highlighting its growing relevance in risk-conscious strategies.
The events of April 2025 raise profound questions about the U.S. economy and its role in global markets. The synchronized decline in stocks and bonds has challenged the traditional 60/40 portfolio, forcing investors to rethink diversification. The possibility of reduced global reliance on U.S. assets, evidenced by central bank gold purchases, introduces risks to the dollar's status as the world's reserve currency.
As markets head into the typically quieter summer months, uncertainty persists, with tariff implementation details, retaliatory trade measures, and Federal Reserve policy decisions poised to drive volatility. To navigate this new risk environment, investors should consider reallocating to assets less tied to U.S. markets, such as gold for its stability, commodities for inflation protection, or select emerging market equities in countries less exposed to tariff fallout. Hedging currency risk and prioritizing liquidity will also be key as global trade dynamics evolve.
April 2025 will stand as a defining chapter in financial history, not only for its market turmoil but for its profound impact on portfolio risk management. The synchronized collapse of stocks and bonds, coupled with gold's rise and questions about the dollar's dominance, has upended conventional investment wisdom.
As uncertainties linger—driven by trade policies, central bank maneuvers, and geopolitical shifts—investors must adapt to a new risk landscape. Diversifying into assets like gold, commodities, or select emerging markets, while closely tracking global developments, will be critical. Whether April's upheaval marks the dawn of a broader secular shift remains uncertain, but it has undeniably redefined how investors approach risk in an unpredictable world.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
2025's Most Attractive Employers For MBAs: Finance Surges, Tech Fades
JPMorgan Chase is the most attractive employer for U.S. business students, signaling a shift to tried and true employment pipelines in an uncertain job market. What a difference a few years makes. In 2022, when tech was still flying high, business students wanted to work in FAANG – the now out-dated acronym for the five best-performing American tech stocks of the time (Facebook, Apple, Amazon, Netflix, and Google.) That year, three of the top five of the were FAANG: Apple was voted the most attractive by business students followed by Google at No. 2. Amazon was No. 4 another tech behemoth – Microsoft – came in at No. 3. But in 2025? None of them cracked the top three. Facebook is now Meta. Google is Alphabet. And amid high-profile layoffs and the disruptive rise of artificial intelligence, . Business students are coming back to their finance roots. All three of the top employers in Universum's 2025 Most Attractive Employers in the U.S. ranking are bulge-bracket banks: JPMorgan Chase took the No. 1 spot for the second straight year, followed by Goldman Sachs (No. 2) and Morgan Stanley (No. 3) Universum, the global employer branding firm, surveys more than 130,000 business, engineering, and IT students across 11 key markets each year to complete its ranking. In the U.S. alone, more than 33,000 students – including thousands of MBAs and business students – shared their career preferences in the 2025 survey. This year, five of the top 10 most attractive employers for U.S. business students were banks or asset managers. Just three were in tech. JPMorgan Chase was No. 1 for the second straight year while Morgan Stanley made one of the most dramatic moves on the list. It rose 9 spots from No. 12 in 2024 to No. 3. Other newcomers to the top 10 included Deloitte, BlackRock, and Bank of America, signaling renewed interest in firms and industries with established business school pipelines. 1 JPMorgan Chase Banking 1 2 Goldman Sachs Financial Services 4 3 Morgan Stanley Financial Services 12 4 Apple Technology 3 5 Google Technology 2 6 Nike Consumer Goods 5 7 Deloitte Professional Services 11 8 Bank of America Banking 13 9 BlackRock Asset Management 14 10 Microsoft Technology 8 During the COVID-19 pandemic and the years that followed, many MBAs turned to tech and consulting for their innovation, pay, and flexibility. But tech started a very public which continued through the Business students are recalibrating. 'Now it's shifted, and it's gone the other direction. It's a very different market than just a few years ago,' said Jeff Rugg, global account director at Universum, during a recent webinar on the rankings. In an unsure job market, finance has resurged. Among the top 100 preferred U.S. employers for business students, 34 were finance-related, compared to 23 in tech and just 9 in consulting. Even the MBB firms – McKinsey (No. 27), Bain & Co. (No. 74), and Boston Consulting Group (No. 36) – fell out of the top 20. Consulting, the other big MBA-destination industry, had only 9 companies on the list. The MBB – McKinsey (ranked No. 27), Bain (No. 74), and Boston Consulting Group (No. 36) – fell out of the top 20 altogether. 'The job market is moving, but not for everyone,' says Paola Ospina, a global account manager at Universum. 'Companies are pulling back on entry-level hiring. This generation is facing an employment crisis, and landing a job has become a real challenge for many of them.' Where MBAs once targeted a short list of 'dream' companies, many are now casting wider nets. While students in past surveys emphasized purpose, flexibility, and making an impact, 2025's survey suggests business students are making more pragmatic decisions. Career growth and competitive pay are now the top two attributes business students look for in an employer, according to Universum. A respectful workplace culture ranked third. 'There's a completely frustrated pool of candidates being ghosted by employers, wasting their time,' Ospina says. 'They're not really being valued. And again, it's all over social media.' Flexibility still matters, but not necessarily remote work. Only 4% of students said they would refuse a job that didn't offer remote options. The rest either preferred flexibility or said they could adjust. 'This generation wants to go into the office,' says Ospina, noting that younger grads started college during the pandemic, when campuses were either closed down or heavily restricted. 'They are craving that in-person interaction.' As Rugg notes, companies like JPMorgan Chase and Amazon – both of which require employees to be in the office – are ranked highly by business students. 'It should give confidence to employers in the marketplace,' he said. Artificial intelligence was another hot topic in this year's survey. While 75% of students said they felt positive or curious about working for an employer that uses AI, 57% said they had not developed AI-related skills. 'So there's a bit of a disconnect,' says Nikki Trifunovic, an employer brand and talent acquisition advisor. The gap is even more pronounced for women, who reported lower levels of AI preparedness than their male peers. For employers, that's both a challenge and an opportunity. Companies that offer robust training and upskilling could be better positioned to attract and retain early-career MBA talent. The 2025 Universum rankings land at a tricky moment in the U.S. labor market. On one hand, it is still adding jobs (147,000 in June alone) while unemployment sits at 4.1%. On the other? 'There is growing uncertainty for employers on what's to happen with the tariffs and all of the policy shifts that are coming,' Ospina says. 'We'll definitely see the full effect of this as we get into the second half of the year.' In response, many employers are moving into a conservative hiring mode. Budgets are tighter. Teams are being asked to do more with less. And companies are laser focused on hiring the right talent, especially those who can drive digital transformation. For candidates, especially new grads, the result is a job market that feels pretty bleak. Only 35% of students felt confident that they would be able to find a job after graduation. The uncertainty feels a lot like the pandemic when companies froze hiring and layoffs were everywhere, Ospina says. Particularly for Generation Z. 'And in their true Gen Z fashion, they're being very vocal about it all over TikTok and social media. They're calling it like they see it – messy, and I think, literally, the worst job market ever,' she says. 'All of that frustration we're seeing online and in the media articles, it's not just noise. It's actually showing up in our data too.' Read Universum's 2025 report on the Most Attractive Employers In The United States. NEXT PAGE: The 100 most-desired employers of B-school students according to Universum's 2025 survey. Goldman Sachs was the second most attractive employer for business school students, according to Universum's 2025 ranking. Universum publishes its Most Attractive Employer Rankings every year in more than 20 countries. Rankings are a reflection of talent's overall opinion of employers in their countries. The top 100 companies as ranked by U.S. business students are listed below. 1 JPMorgan Chase Banking 1 2 Goldman Sachs Financial Services 4 3 Morgan Stanley Financial Services 12 4 Apple Technology 3 5 Google Technology 2 6 Nike Consumer Goods 5 7 Deloitte Professional Services 11 8 Bank of America Banking 13 9 BlackRock Asset Management 14 10 Microsoft Technology 8 11 Amazon E‑commerce / Technology 10 12 Netflix Media & Entertainment 6 13 Spotify Media & Entertainment 7 14 Fidelity Investments Financial Services 15 15 Charles Schwab Financial Services 20 16 EY (Ernst & Young) Professional Services 16 17 The Walt Disney Company Media & Entertainment 9 18 KPMG Professional Services 22 19 PwC Professional Services 23 20 Wells Fargo Banking 28 21 Blackstone Private Equity 43 22 L'Oréal Groupe Consumer Goods 37 23 American Express Financial Services 33 24 Lockheed Martin Aerospace & Defense 40 25 Berkshire Hathaway Conglomerate 39 26 Vanguard Financial Services 27 27 McKinsey & Company Management Consulting 36 28 Mercedes-Benz Group Automotive 26 29 The Coca-Cola Company Consumer Goods 35 30 Tesla Automotive / Tech 17 31 Capital One Financial Services 45 32 Patagonia Retail / Apparel 24 33 Delta Air Lines Airlines 18 34 Federal Bureau of Investigation (FBI) Government 30 35 Nintendo Technology / Entertainment 21 36 Boston Consulting Group (BCG) Management Consulting 44 37 Sony Technology / Entertainment 25 38 Warner Bros. Discovery Media & Entertainment 29 39 Central Intelligence Agency (CIA) Government 34 40 BMW Group Automotive 42 41 Marriott International Hospitality 38 42 Ford Motor Company Automotive 49 43 adidas Retail / Apparel 47 44 Airbnb Travel / Tech 55 45 Estée Lauder Consumer Goods 73 46 PNC Financial Services Group Banking 64 47 Toyota Automotive 41 48 Target Retail 31 49 Edward Jones Financial Services 69 50 PepsiCo Consumer Goods 59 51 Paramount Media & Entertainment 46 52 General Motors Automotive 66 53 IBM Technology 70 54 National Geographic Media / Publishing 32 55 SpaceX Aerospace 53 56 Johnson & Johnson Healthcare 87 57 Boeing Aerospace 51 58 Hilton Hospitality 58 59 Meta Technology / Social Media 85 60 Federal Reserve Government 54 61 Procter & Gamble Consumer Goods 99 62 LVMH Luxury Goods 71 63 United Airlines Airlines 48 64 United Nations International Organization 62 65 Citi Banking 86 66 American Airlines Airlines 52 67 Zara Retail / Apparel 67 68 Adobe Technology 56 69 TD Bank Group Banking — 70 S&P Global Financial Data 91 71 Starbucks Retail / Food 75 72 Mayo Clinic Healthcare 65 73 Barclays Banking — 74 Bain & Company Management Consulting 88 75 Nordstrom Retail 92 76 Southwest Airlines Airlines 63 77 Salesforce Technology — 78 State Farm Insurance Insurance 84 79 UBS Banking — 80 Internal Revenue Service (IRS) Government 60 81 Mastercard Financial Services 98 82 Under Armour Retail / Apparel 100 83 Department of Defense (DOD) Government 57 84 Northwestern Mutual Insurance — 85 Department of the Treasury (USDT) Government 90 86 Electronic Arts Entertainment / Gaming 80 87 Visa Financial Services 74 88 Oracle Technology — 89 Robinhood Fintech — 90 Deutsche Bank Banking 61 91 Intel Technology 76 92 Live Nation Entertainment Entertainment 89 93 Honda Automotive 81 94 United States Department of State (DOS) Government 96 95 National Institutes of Health (NIH) Government / Healthcare — 96 Bloomberg Financial Media 82 97 MGM Resorts International Hospitality 94 98 Walmart Retail 93 99 Environmental Protection Agency (EPA) Government — 100 The Hershey Company Consumer Goods — DON'T MISS: THE SECRET STANFORD PROGRAM NO ONE'S HEARD ABOUT AND WHY THIS FASHION-TECH FOUNDER CHOSE THE DUKE FUQUA MBA TO PIVOT TO PRODUCT MANAGEMENT The post 2025's Most Attractive Employers For MBAs: Finance Surges, Tech Fades appeared first on Poets&Quants. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 minutes ago
- Yahoo
As US grapples with China relations, Taiwan's president scraps stop on American soil
WASHINGTON (AP) — The Taiwanese government has called off a plan for its president to transit through the United States on his way to Latin America, The Associated Press has learned — a decision leading to conflicting accounts of the reason for the cancellation. Amid speculation that the Trump administration had opposed a proposed stopover by Taiwanese President Lai Ching-te in New York, Taipei said Lai had no overseas travel plans due to domestic issues, including natural disasters and tariff negotiations with the United States. The other proposed stop on Lai's itinerary was Dallas, Texas. Whatever the reason, the cancellation is certain to hand a major diplomatic victory to Beijing and has drawn concerns from experts that the White House is setting a bad precedent for U.S.-China relations. Details about the administration's decision were scant, but one person with knowledge of the discussions told AP that the U.S. 'had asked Taipei to rearrange the transit — not go through New York.' Another person with knowledge of the discussions said Beijing had sensed that it could ask President Donald Trump not to allow Lai to transit through the U.S. because of the perceived 'desperation' by Trump to meet Chinese President Xi Jinping. Both people spoke on condition of anonymity because they are in current sensitive discussions with administration officials. The White House said it had nothing to say on this matter. Tammy Bruce, spokesperson for the State Department, said it was a 'hypothetical' issue because Taiwan had not announced any travel plans for Lai. 'There are a lot of questions and a lot of suppositions that have happened," she told reporters on Tuesday. 'But I can say that it is a hypothetical at this point. There have been no plans.' Discussions unfolded late last week By the end of last week it was clear that the Trump administration was discussing the likely transit by Lai, though it was unclear if the administration had moved to block it, according to one of the people. It was also unclear if the Trump administration would be open to allowing Lai to transit through a city other than New York. The United States is obligated by its own laws to give military support to Taiwan, which split from China in 1949 during a civil war. Beijing claims the island off its southeastern coast as sovereign territory and has vowed to seize it, by force if necessary. Jason Hsu, senior fellow at the Hudson Institute and a former legislator in Taiwan's Legislative Yuan, said Taiwan always consults with the United States on transit and called it 'abnormal' for Washington not to agree when such stopovers are permitted under the Taiwan Relations Act. Bruce said transits by high-level Taiwanese officials, including presidents, 'are fully consistent with our longstanding policy and practice.' In Taipei, Karen Kuo, spokesperson for the presidential office, said there was no immediate plan for Lai to travel. "Considering the recent typhoon disaster recovery efforts in southern Taiwan, the U.S.-Taiwan reciprocal tariff measures and regional developments, the president currently has no plans for overseas visits in the near future,' Kuo said. Routine practice that draws routine protests from Beijing The Chinese Embassy did not respond to an AP request for comment. Beijing, however, has routinely protested any transit through the U.S. by Taiwanese leaders. Lai was elected president of Taiwan in 2024. On his first overseas trip last November he made stops in Hawaii and Guam, where he was received by U.S. politicians. While such transits had been routine by previous Taiwanese presidents and under previous U.S. administrations, the person familiar with the discussions said Beijing considers Lai an exception because it views him as being more aggressive in seeking Taiwan independence. Zack Cooper, senior fellow at the American Enterprise Institute, said that while recent U.S. administrations have not allowed Taiwan to be used in negotiations with Beijing, "this decision raises questions about whether the Trump administration is reconsidering that approach.' And Jason Hsu, a senior fellow at Hudson Institute and a former legislator from Taiwan's KMT party, said that in preventing Lai's stopover 'the Trump administration appears to be accommodating China's red lines.' Democrats on the House Foreign Affairs Committee said on Tuesday that Trump is folding to Beijing. Rep. Raja Krishnamoorthi of Illinois, who is the top Democrat on the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, called it 'another example of the Trump Administration caving to China in hopes of reaching a trade deal.' 'Presidents of both parties have allowed Taiwan officials to transit through the U.S. in the past, and now should be no different," he said in a statement.
Yahoo
17 minutes ago
- Yahoo
Susan Monarez confirmed as CDC director. Here's what she's said about vaccines and more
The U.S. Senate voted Tuesday along party lines, 51 to 47, to confirm Susan Monarez as the new director of the Centers for Disease Control and Prevention. President Trump nominated her for the role in March, praising her as "an incredible mother and dedicated public servant" who "understands the importance of protecting our children, our communities, and our future." Monarez has been serving as the acting head of the CDC since January, and previously worked as the head of the Advanced Research Projects Agency for Health. She was viewed as somewhat surprising pick for the CDC role because unlike most recent CDC directors, she holds a Ph.D. but is not a medical doctor. The CDC said Monarez "brings decades of distinguished experience in health innovation, disaster preparedness, global health, and biosecurity" to the agency, and will help advance the "mission to Make America Healthy Again." At her confirmation hearing before the Senate's Health, Education, Labor and Pension (HELP) committee on July 9, Monarez garnered praise from the Republican chairman, Sen. Bill Cassidy, who is a physician, for her commitment to rebuilding public trust in the wake of the COVID-19 pandemic. Democrats on the committee grilled her about the impact of cuts in federal funding for health programs and medical research, and expressed concern about the CDC's role under Health and Human Services Secretary Robert F. Kennedy Jr. Monarez was questioned by committee members about a range of health topics. Here are some of those highlights. Monarez on vaccines Monarez faced a number of questions about vaccine recommendations. Kennedy has been a longtime vaccine critic who has pushed a discredited theory linking routine childhood shots to autism, but during her hearing, Monarez refuted that view and stated that she has "not seen a causal link between vaccines and autism." Amid a growing measles outbreak this year, Kennedy has acknowledged the vaccine's efficacy against the disease while still saying he supports individual choice. In a March interview with CBS News, Kennedy publicly encouraged people to get the measles vaccine. "If I'm confirmed as CDC director, I look forward to supporting the secretary with science and evidence, and making sure that I am giving him the best information possible," Monarez said at her confirmation hearing. "Measles is an important health threat and we have to make sure we are doing everything that we can to prevent and mitigate it." Monarez was also asked about the continued availability and affordability of vaccines if the CDC's vaccine advisory panel, made up of new RFK Jr. appointees, makes changes to recommendations. "Vaccines absolutely save lives, and if I'm confirmed as CDC director, I commit to making sure we continue to prioritize vaccine availability," she said. Monarez on fluoride Fluoride, another topic Kennedy has spotlighted, was also a subject of discussion during Monarez's hearing. This year, two states, Utah and Florida, became the first to ban the use of fluoride in drinking water, where it's been added for decades to help prevent tooth decay. "Fluoride is an important component to oral health, and there are various aspects of using fluoride to improve oral health — a direct application can be very valuable," Monarez said. Democratic Sen. Angela Alsobrooks of Maryland specifically asked Monarez whether the water in Potomac, Maryland, which has fluoridation, is safe for families. Monarez replied: "I believe the water in Potomac, Maryland is safe." Monarez on RFK Jr. and the measles outbreak Measles came up repeatedly as senators questioned Monarez about how she would interact with Kennedy in her role at the CDC. "The CDC director can't perform this critical role unless they are politically independent. Which means that you must be willing to disagree with political leaders based on scientific evidence," Democratic Sen. Maggie Hassan of New Hampshire said. "So, is there anything that you disagree with Secretary Kennedy about?" "If I'm confirmed as CDC director, I look forward to having technical discussions with the secretary. He has said he values and prioritizes independent thinking and using science to drive decision making," Monarez replied. "I am an independent thinker, and I am a scientist, and I will welcome the opportunity to share my opinions based on science and evidence with him as he makes some of these very difficult decisions." After Monarez sidestepped a question from Hassan about whether she disagrees with anything Kennedy has done, the senator got more specific, asking about Kennedy's claim that it's "very difficult for measles to kill a healthy person." This year's measles outbreak, centered in West Texas, killed two children who doctors said did not have previous health conditions. Monarez replied that measles is an "important public health threat" that can be lethal. Russia reacts to Trump's new deadline on Ukraine ceasefire Immigration agent told 18-year-old U.S. citizen "you got no rights here" during arrest Reporter's Notebook: A case of writer's block
