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MAPFRE Gestión Patrimonial practical guide to protecting portfolios

Apr 9, 2025

Redacción Mapfre

The date dubbed “Liberation Day” by US President Donald Trump was marked on many investors' calendars, as it would signal the end of uncertainty regarding tariff policies.

The tariffs announced were higher than expected, with a minimum tariff of 10% on all U.S. imports and reciprocal tariffs on more than 50 countries that Trump said had “abused the United States for decades.” However, the 90-day truce offered by Trump to all but China turned the situation around again. The MAPFRE Gestión Patrimonial team explains the keys to weathering the storm and protecting portfolios:

What's happening in the markets? Increased volatility in the face of tariff uncertainty

The market's reaction to the tariff announcements was immediate. On the one hand, in the first days after the announcement, US stock markets registered their worst falls since the pandemic, dragging with them the main global indices, which also closed with high falls. As the days have gone by, volatility has also moved to fixed income assets, which has caused the US Administration to announce a 90-day pause in tariffs for all countries that have not announced retaliatory measures against the US. This announcement has caused a strong rebound in the market, confirming the current volatility and uncertainty in the markets.

What can this mean for economies? Cooling economies, rising inflation and affecting corporate profits

From a macroeconomic point of view, if this tariff dispute is prolonged, it could have implications that affect the four fundamental pillars of economies: growth, inflation, liquidity and corporate profits.

How can we deal with it? Diversification, active management and respect for the time horizon

In such a volatile and uncertain scenario, it is essential to remain calm and avoid impulsive decisions. Instead of reacting in the short term, it is best to reinforce the importance of the time horizon and the diversification offered by well-constructed investment portfolios designed to withstand situations such as this. In addition, at times like these, active management becomes more relevant as it enjoys greater flexibility to avoid the most detrimental assets and detect new investment opportunities, as well as the accompaniment of quality financial advice.

High volatility in stock markets: why it happens and how to act

In recent weeks, international markets have faced their most challenging period since 2020. In a situation marked by surging volatility, emotions like fear take center stage in the minds of many investors, and market movements shift from linear to exponential. Such situations, although not frequent, do tend to recur periodically, and it’s important not to get swept up in the negative atmosphere or act impulsively with a short-term mindset, as the experts at MAPFRE remind us.

The dollar's hegemony under scrutiny

The US dollar’s role as the world’s reserve currency, historically underpinned by institutional credibility, financial depth, and trade dominance, is now facing mounting structural challenges that go beyond short-term economic fluctuations.

The tariff war shakes the global economy and casts doubt on U.S. debt

The tariffs are a problem that’s marking a major shift in the economic relationships we've built and developed over the past few decades. The U.S. President is using them as a tool to bring manufacturing back home and, in turn, boost government revenue through both direct and indirect taxation. But the ends don't always justify the means, and in pursuing these goals, the U.S. is now facing slower economic growth and rising inflation.