Amid Trump’s Tariffs, Time-Tested Investing Strategies Hit Roadblock
As stocks started to fall in February, little did investors know that some of their most tried and trusted strategies would be upended.
Initially, disciples of the classic portfolio allocation strategy of 60% stocks and 40% bonds breathed a sigh of relief.
While the S&P 500 was undergoing a correction, bonds were seeing gains for their safe-haven appeal. Thanks to recession fears, yields on risk-free 10-year Treasury notes had fallen from 4.8% to under 4% (bond yields are inversely related to prices) between mid-January and early April. Diversification was working as promised.
Then, after the White House’s April 2 “Liberation Day” tariffs announcement, things changed.
Stocks plummeted even further. But Trump’s…
