Dan Appleby

Q3 2025 has seen heightened volatility, with US trade and immigration policies creating ripple effects across markets. President Trump’s introduction of sweeping tariffs – dubbed "Liberation Day" – and subsequent policy reversals caused uncertainty, though corporate earnings remained resilient. Alongside, mass deportations have intensified labour shortages, risking inflation and complicating the Federal Reserve’s path forward. Traditionally safe assets like US government bonds and the dollar have underperformed, challenging perceptions of stability. For UK investors, a weakening dollar has amplified losses on US assets despite positive equity returns in dollar terms. Globally, markets outside the US have delivered stronger performance, reinforcing diversification as the key strategy for 2025. Meanwhile, Middle East tensions, though significant, appear to have limited market impact so far, particularly on oil prices. Amid shifting dynamics and policy unpredictability, the outlook underscores the need for flexible, diversified portfolios and a watchful eye on US fiscal developments.

To read the full Q3 outlook, visit https://blackfinch.com/market-updates/

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