FNArena’s Weekly Insights – April 01 2025
In this week’s Weekly Insights:
By Rudi Filapek-Vandyck, Editor
Time For Appreciating Quality
My biggest surprise, when overlooking the local share market this week, is undoubtedly the fact that, on most measurements, the damage done thus far to investment portfolios in Australia remains relatively limited.
It can easily be argued the risks out there, predominantly stemming from the US President’s favourite word (tariffs), are much greater than what has been priced in thus far.
Then again, not everyone is convinced the US administration’s intention is to keep tariffs in place indefinitely, rather than using them as a temporary negotiating tactic. Not yet anyway.
The more experienced traders will acknowledge it’s plain impossible to properly price in all the risks without having clear oversight of the finer details and their potential implications.
In other words: we better not read too much into share prices and index movements thus far.
They are largely the consequence of heightened fear and uncertainty, mixed with plenty of contrasting narratives and a firm belief, still, that all shall work out in a positive manner, eventually.
Simply put: we haven’t reached panic station yet; markets have been volatile, and scary at times, but all in all this ongoing process of re-adjusting to the new growth outlook is occurring in an orderly fashion.
This is both comforting and scary. Viewed through a glass half empty approach, it means we aint seen nothing as yet, and share markets can fall a lot deeper if the plot thickens going forward.
Let’s take a small step back and…………………….
