Steering Your Investments Through Market Uncertainty Amid New 2025 U.S. Tariff Policies

In 2025, market volatility has once again taken center stage, fueled by the reimplementation of U.S. tariffs under the Trump administration. As an investor, you might be wondering: How do these policy shifts impact my portfolio? Should I pivot away from certain asset classes? How can I preserve wealth while still positioning for long-term growth?

These are the questions I’ve been analyzing daily. At Platinum Bridge Strategies, I conduct a global market assessment every week, tracking economic data, policy decisions, and historical trends to help high-net-worth investors navigate uncertainty. Today, I want to share key insights on how to steer your portfolio through this shifting economic landscape.

The Market’s Reaction to Tariffs: What History Tells Us

Trade wars are nothing new. We saw similar dynamics play out in 2018 under Trump’s first administration, where tariffs on China and other trading partners led to market volatility. However, today’s scenario is distinct. Inflationary pressures are different, global alliances are evolving, and the tax cuts that were once stimulative have now been embedded into long-term economic forecasts.

So, what can we learn from the past? Markets dislike uncertainty—and the stock market’s reaction to the latest tariffs has been a mix of heightened volatility and a divergence between U.S. and international stocks.

Stock Market Performance in 2025

S&P 500 (U.S. Large Companies): Down 1.5% year-to-date
Large International Companies: Up 11.9% year-to-date

This sharp divergence suggests that while U.S. companies are grappling with the tariff impact, international firms—especially in key industries—are seeing renewed strength.

The Rise of International Stocks: What’s Driving the Shift?

For over a decade post-2008, U.S. equities dominated global markets. Now, international markets are showing signs of resurgence. Why?

1. Geopolitical Shifts & Military Spending

Recent U.S. policy decisions indicate a potential pullback from military support for key allies, prompting foreign governments to increase defense spending. This has directly benefited international defense contractors, leading to outperformance in European and Asian markets.

2. Rebalancing Portfolios: A Smart Play

For years, we’ve maintained an underweight position in international stocks, largely because they had underperformed compared to U.S. equities. But with the current market shift, rebalancing toward a more neutral allocation makes sense. This doesn’t mean abandoning U.S. investments, but rather ensuring global diversification to capitalize on areas of strength.

Sector Rotation: The Shift from Growth to Stability

Another critical theme emerging in 2025 is a rotation away from high-growth technology stocks and toward more stable, dividend-paying companies.

Why Are Growth Stocks Underperforming?

The past few years saw massive gains in AI-driven, high-growth tech firms, which dominated the S&P 500. But this year, that trend is reversing:

High-growth tech stocks are down 5% YTD
Dividend-paying stocks are up 3.4% YTD

Why Dividend Stocks Are Winning?

In times of economic and market uncertainty, investors look for stability and income-generating assets. Companies with strong balance sheets and consistent dividend payouts are becoming more attractive. Think AT&T, Johnson & Johnson, and Procter & Gamble—established companies offering reliable returns.

Portfolio Strategy: Balance Growth with Stability

Given the market’s shift, a prudent approach is to maintain stock exposure while shifting toward dividend-paying stocks. This ensures participation in potential market rebounds while reducing downside risk.

Market Timing: The Biggest Mistake Investors Make

In times of market turbulence, I often get calls from clients asking, "Should we sell everything and wait this out?" I understand the impulse, but history has shown that trying to time the market is a costly mistake. Here’s why:

The Cost of Missing the Best Market Days

If you had invested $10,000 in the S&P 500 in 1979, your portfolio would have grown to $1.7 million if you had stayed invested the entire time. However:

Missing just 5 of the best market days would have cut returns to $1 million.
Missing the best 10 days would have slashed returns to $762,000.

This illustrates a critical investing principle: The biggest market gains often happen when least expected. If you’re out of the market during those key days, long-term returns suffer dramatically.

The Right Strategy: Stay Invested, Stay Diversified

Instead of trying to time exits and reentries, the better approach is to:
Maintain exposure to the stock market to capture long-term growth.
Adjust allocations to reduce risk exposure during periods of uncertainty.
Diversify globally to take advantage of shifting market leadership.

Key Takeaways: How to Invest Amid Tariff Uncertainty

Accept that market volatility is inevitable-but history shows that long-term investors prevail.
International stocks are gaining momentum due to shifting geopolitical trends—consider global diversification.
Dividend-paying stocks are outperforming growth stocks—position portfolios accordingly for stability and income.
Avoid market timing mistakes—staying invested is the best way to capture long-term gains.
Monitor policy developments closely—trade agreements, tariff negotiations, and government announcements can shift market sentiment overnight.

Final Thoughts: Stay the Course, But Adapt Smartly

At Platinum Bridge Strategies, my mission is to help high-net-worth investors navigate turbulent markets with confidence and strategy. The 2025 tariff policies are creating uncertainty, but they also present opportunities. By focusing on global diversification, sector rotation, and maintaining market exposure, we can continue to grow wealth while minimizing unnecessary risk.

I will be reevaluating these market shifts continuously and adjusting portfolios as new data emerges. If you have questions about your specific investment strategy, I invite you to reach out for a one-on-one consultation.

This is Antwone Harris with Platinum Bridge Strategies—helping you invest wisely in uncertain times.

Investment Advisory services offered through Osaic Advisory Services, LLC (Osaic Advisory). Osaic Advisory is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Advisory.

The views expressed are not necessarily the opinion of Osaic Advisory Services, LLC, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Investing is subject to risks including loss of principal invested. Past performance is not a guarantee of future results. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.