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The major market indexes (^GSPC, ^IXIC, ^DJI) ended the trading session in negative territory amid tariff negotiations between Mexico and Canada and the US. Earlier today, Mexico's President Claudia Sheinbaum announced the tariffs on imports from the country have been delayed until March 1.
F/m Investments President and CIO Alex Morris explains that investors have been caught off guard by the rapid changes, especially with political decisions and equity reactions being driven by social media and breaking news.
He advises long-term investors to stick with a solid strategy and avoid knee-jerk reactions to daily market swings: “I think investors definitely need a goal and a strategy. They need to know what's important to them and what are they willing to react to."
"Most folks really need an asset allocation that changes less frequently than I think most are willing to admit," Morris says, mentioning investors should stick to rebalancing strategies.
Morris also highlights inflation as a growing concern, stressing that many portfolios are underprepared for its impact, urging investors to hedge against it with products like short-term TIPS (Treasury Inflation-Protected Securities): "Whether it accelerates or stays where it is — it's certainly going to continue to be a big fear, and it's not going to be zero, right?"
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This post was written by Josh Lynch