I mentioned in last week’s commentary that over the past 20 years, seven of the stock market’s best days occurred within just 15 days of one of the market’s 10 worst days. Fast forward four trading days later, and North American markets went on a historic run after Trump announced a 90-day pause on reciprocal tariffs.

The S&P 500 skyrocketed 9.52%, the third largest gain since World War II, the Dow Jones Industrial Average 7.87%, its biggest advance since March 2020, and the Nasdaq Composite jumped 12.16%, notching its largest one-day jump since January 2001 and second-best day ever.

Despite the immediate market reaction being overwhelmingly positive, investors are not completely out of the woods as the administration vows to recalibrate global trade. As negotiations commence, investors must keep in mind there will be both positive and negative headlines as each party positions itself to extract the maximum amount of concessions possible.

By taking a disciplined approach and positioning the portfolio across different asset classes – including an allocation to private markets alongside public stocks and bonds – investors can build a more resilient portfolio to navigate turbulence. This generally results in better outcomes than those that allow emotions to creep into their decision-making process and, unfortunately, miss out on market gains.

In the event you have questions or comments, please don’t hesitate to reach out.

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