Market Commentary 1 January 2025 - 31 March 2025
In many ways, this report already feels out of date. That’s not a bad thing—it simply reflects how quickly markets can move. The turmoil that followed the U.S. tariff announcement in early April is a prime example. In situations like this, one of the best responses is often to do nothing at all and let your investment strategy do its job. We would fully support that as a sign of disciplined investor behaviour. Attempting to time the market during periods of sudden volatility rarely ends well.
For those interested in the background: on 2 April, Donald Trump announced a new tariff policy that introduced immediate uncertainty into the market. These tariffs have made it nearly impossible to forecast company earnings accurately—particularly when the companies themselves are unsure how to respond. It’s a bit like buying a house mid-renovation; most people would rather wait until the dust settles. In the share market, that hesitation plays out as a mismatch between supply and demand: panicked investors want to sell, and more seasoned investors want to wait. As a result, prices fall.
Of course, this isn’t new. We’ve seen similar events many times throughout market history. Some companies will struggle, and others will thrive. That’s why your portfolio is diversified and constantly monitored—we aim to replace the laggards with future leaders over time. You’re not just invested in individual companies; you’re invested in capitalism itself. And we don’t believe for a second that capitalism is under threat from Donald Trump.
This is, of course, a simplified explanation. For a more detailed update, we’ve included our latest market commentary video and written summary, which explain how we’re managing portfolios through this evolving environment.
A few housekeeping notes:
- End of Tax Year: 31 March also marks the end of the tax year. We appreciate your patience while we prepare your tax reports, which we expect to deliver by mid-May.
- Custodian Change: We’ve now completed the transition of custodians for the Lifetime Series portfolios to Portfolio Nominees Ltd, effective 1 April 2025. Your 31 March report will still come from Asset Custodians Limited, but future reports will be issued by the new custodian. These reports are sent separately from Lifetime and act as an important security check—you should see the same closing balances across both.
Finally, we understand that market uncertainty can raise questions or concerns. If you’re considering any major financial decisions—or if anyone in your family could benefit from advice—please don’t hesitate to reach out. We're here to help.