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Stocks (^GSPC, ^IXIC, ^DJI) are experiencing volatility and falling Monday morning tied to President Donald Trump's wave of tariffs that went into effect over the weekend; Mexico's President Claudia Sheinbaum announced the tariffs on imports from the country have been delayed until March 1 amid ongoing negotiations with the Trump administration.
Katy Kaminski, chief research strategist at AlphaSimplex Group, joins Wealth host Brad Smith to discuss how investors should manage their portfolios in this uncertain market environment.
She stresses the need to prepare for higher volatility: "It's really about hedging inflation in the short term and focusing on companies that are more resilient to some of these short-term inflation moves."
Kaminski suggests that investors focus on safe havens like the US dollar (DX=F, DX-Y.NYB), energy, and commodities that could hedge against inflation. She also points to short-duration bonds as a better option than long-term fixed income (^TYX, ^TNX, ^FVX) if inflation rises. With major tech earnings approaching, she emphasizes that strong results, particularly in generative artificial intelligence (AI), could provide stability.
"I think last week was a good wake-up call for many investors, as well, that... the narrative will continue to change, and they're [investors are] going to have to be sort of ready for that," Kaminski says.
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2025/02/03
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