Weekly Market Update

Weekly Financial Update for the Grand Protector

Top Story: Tariffs and Trade War Escalate

President Trump's escalating trade war has taken center stage this week, with the imposition of 25% tariffs on foreign-made autos. The move has sparked concerns about a potential full-on trade war and its impact on the global economy. Stocks have responded negatively, with the Dow Jones Industrial Average (DJI) falling over 700 points or nearly 1.7%, while the S&P 500 (^GSPC) dropped almost 2%.

Other Key Developments:
• Consumer Sentiment: US consumer sentiment in March plummeted to its lowest level since November 2022, with concerns about inflation and the broader economy.
• Inflation Pressures: The release of a hotter-than-expected Personal Consumption Expenditures (PCE) index reading showed prices increased more than expected last month, rising 0.4% month over month and 2.8% year over year.
• GDP Forecasts: The Federal Reserve Bank of Atlanta's GDPNow index now forecasts that US gross domestic product (GDP) will fall 2.8% in the first quarter, compared to a previous projection of a 1.8% decline.

Market Reaction:

The escalation of trade tensions and concerns about inflation have led to a significant sell-off in stocks. The DJI dropped nearly 1.7%, while the S&P 500 (^GSPC) fell almost 2%. Tech stocks, particularly those exposed to tariffs like Nvidia (NVDA) and Tesla (TSLA), led the declines.

Recommendations for Investors:

In light of these developments, investors may want to consider:
• Diversifying their portfolios: Spread investments across various asset classes, sectors, and geographic regions to minimize exposure to specific market segments.
• Reviewing their risk tolerance: Assess investment goals and risk tolerance before making any changes to the portfolio.
• Staying informed: Continuously monitor economic news and trends to make informed decisions about investment strategies.