‘Navigating market volatility by staying focused amid economic uncertainty’ – Jordan Portelli

“Market volatility can feel unsettling, especially in today’s fast-paced news environment. However, it’s important to remember that fluctuations are a natural part of the investing journey. What truly matters is not the market’s short-term movements, but how you choose to navigate them,” said Jordan Portelli, Chief Investment Officer at Calamatta Cuschieri Moneybase, as global investors experienced a challenging start to April as renewed trade tensions among major economic powers – the United States, Europe, and China – impacted markets.

Major indices suffered declines this week as nervous traders reacted to the unexpected announcement of sweeping new tariffs.

The Dow Jones Industrial Average declined by over 15% from its yearly highs, while the S&P 500 fell by 17%, approaching bear market territory. The Nasdaq, impacted by continued pressure on tech stocks, dropped by 22%, entering a bear market. European markets reflected the global trend, experiencing a 15% decline, while major Asian indices also faced drops amid ongoing uncertainties.

The market turbulence was triggered by what U.S. President Donald Trump termed ‘Liberation Day,’ marked by the imposition of harsher tariffs on multiple countries. In response, Beijing introduced a 34% blanket tariff on all U.S. goods. The deepening trade war stoked fears of prolonged economic disruption.

“This is a textbook example of how policy decisions can rattle investor sentiment almost overnight,” explained Portelli. “Markets don’t just respond to earnings reports or economic data—they react even more sharply to uncertainty. And right now, uncertainty is the dominant force.”

The market downturn impacted various sectors, with tech companies facing particular pressure. Tesla saw additional declines, influenced in part by CEO Elon Musk’s concerns over recent policy decisions. Apple also experienced losses due to the newly imposed tariffs, which may affect profit margins. Meanwhile, Nvidia, which had been a strong performer throughout the year, faced a correction as enthusiasm around AI cooled.

Banking and financial services shares also faced downward pressure as concerns around consumer confidence and lending emerged. Major U.S. banks, including JPMorgan Chase and Bank of America, recorded declines amid a cautious market sentiment.

“These are broad-based losses with massive irrational outcomes,” added Portelli, noting that “Investors are rotating out of risk assets and into safe havens. We’ve seen a spike in gold prices and, and a rally into Money Market Funds and government bonds – classic flight-to-safety behaviour.”

Compounding the pressure is a wave of fiscal policy uncertainty at home. The market is still digesting the structural reforms proposed by newly re-elected President Trump, including the establishment of the Department of Economic Efficiency. With Scott Bessent at the helm as Treasury Secretary, markets are on edge about what these policy changes might mean in practical terms.

“Investors need to separate noise from narrative. From recent memory could the Covid crisis be any worse?” Portelli advised. “Yes, headlines drive markets in the short term. But over the medium to long term, fundamentals prevail. Right now, naturally, fundamentals are under review, so the market is repricing everything. However, the high intra-day volatility is unjustified”

Still, Portelli was quick to caution investors against knee-jerk reactions.

“The worst thing anyone can do is try to time the market in the current market turmoil. History has shown that it is more important to consider your time in the market, rather than its timing. It’s better to stay invested and reassess your positioning, rather than run for the exits.”

His advice for those worried about their portfolios? Stay calm and focus on what you can control. “If your financial goals haven’t changed, your strategy probably shouldn’t either. Focus on quality blue-chip stocks, strong balance sheets, and businesses with resilient cash flows. These are the companies that bounce back first.”

Portelli also underscored the importance of diversification. “Having exposure outside the U.S., including emerging markets and alternative assets, can provide a helpful buffer. Diversification isn’t just a cliché, it’s a shield.”

He suggested that now may be an opportune moment for investors to review their portfolios and rebalance. “Over the past year, equity exposure may have drifted higher. A correction like this is a good opportunity to realign with your long-term asset allocation.”

What we are experiencing today is namely the fear of the unknown unpredictability. This is what the fear index is reflecting. Probably once constructive negotiations kick in tariffs will not be as bad as the market is pricing today. In reality, the real ultimate impact is yet very difficult to be quantified. So, it is important to separate noise from the more plausible outcomes of this tariff saga.