Vassili Panoussis

We saw heightened market volatility towards the end of Q1 largely due to Trumps tariffs causing markets to price in increased risks of a stagflationary environment for the US. Trump has shown his commitment to bringing down the trade deficit the US has with it's trading partners and at this stage there is a lot of uncertainty on how other nations will reply.

Our outlook for Q2 2025 is one of increased volatility primarily due to Trumps “Liberation Day” Tariff announcement that is planned for the 2^nd of April. We believe offshore equities will underperform and if tensions continue to rise, we should see a risk-off sentiment perpetuate into local equities too. Additionally, we believe bonds and gold will most likely outperform equities given their defensive naturewhile the market waits for more clarity on world affairs

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