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Investors weigh the impact of US President Donald Trump's tariff policies. Mackenzie Investments chief investment officer of equities Lesley Marks joins Market Domination with Julie Hyman and Josh Lipton to discuss her expectations for Trump's tariff policies and explain which part of investors' portfolios will be least affected.
Marks says the tariffs create an opportunity for investors to reassess their portfolios and analyze their risk tolerance. "The tariff news is creating a bit of uncertainty ... whenever there are things that are sort of unpredictable or uncertain, I think we have to factor that into how we're positioned in our investment portfolios," she says. "Whether that's through the fixed income side or the equity side, you have to take into account the fact that there is more risk over the investable time horizon than there was before we were talking about tariffs."
The strategist raises concerns about the market dismissing tariff risks and viewing Trump's rhetoric as a negotiating tactic rather than a proposal for actual policy plans, saying, "That's flawed logic" since Trump will need tariffs to "help finance future corporate tax cuts."
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"Investors do need to start to think that, realistically, there is going to be some level of tariffs and that that should be incorporated into their expectations when they're positioning portfolios," she says.
Marks highlights service sectors like hospitality and information technology as being less exposed to tariff impacts.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Naomi Buchanan.