Ever wonder what happens to your investments when a new president shakes things up? The first 100 days of Donald Trump’s second term have been nothing short of a wild ride for investors. Markets have swung, tariffs have sparked chaos, and some sectors have shone brighter than others. I’ve been glued to the numbers, and let me tell you, the story they tell is fascinating. Let’s dive into the winners and losers of this turbulent period and figure out where the smart money’s headed.
Navigating Trump’s Market Rollercoaster
Trump’s return to the White House kicked off with bold moves—think sweeping tariffs and a shake-up of global trade. The result? A stock market bloodbath that sent shockwaves worldwide. Oil prices tanked, gold skyrocketed, and investors scrambled to make sense of it all. While the dust hasn’t fully settled, certain patterns have emerged. Some sectors and funds have defied the odds, delivering impressive returns, while others have taken a brutal hit. Here’s my take on what’s been driving these shifts and where you might want to park your cash.
Why Tariffs Changed Everything
Trump’s tariff-heavy agenda has been the talk of the town. By slapping hefty duties on imports, he’s aimed to boost American businesses, but the ripple effects have been massive. Global supply chains are in disarray, and businesses are grappling with higher costs. For investors, this means uncertainty—and uncertainty can be a portfolio’s worst enemy. But here’s the kicker: not every sector’s suffering. Some are thriving in this chaos, and understanding why is key to making savvy moves.
Tariffs are a double-edged sword—some companies bleed, while others quietly cash in.
– Market analyst
I’ve noticed that tariffs tend to hit smaller companies hardest. They lack the cash reserves or global reach to dodge the fallout. Larger firms, especially those tied to domestic markets, have more wiggle room. This dynamic has shaped the winners and losers over the past 100 days, and it’s worth keeping in mind as Trump’s policies unfold.
Top-Performing Sectors: Where the Money’s Flowing
Despite the market turmoil, a few sectors have come out on top. Let’s break down the standout performers and why they’re shining.
- Latin America: Up 4.5%, this region surprised everyone. Lower-than-expected tariffs on neighboring countries gave these markets a boost.
- UK Gilts: With a 2.4% return, these safe-haven assets attracted cautious investors spooked by volatility.
- Sterling Corporate Bonds: Returning 1.9%, these bonds offered stability amid the storm.
- Gold: A no-brainer for nervous investors, gold funds saw massive inflows as prices surged 22%.
Latin America’s performance caught my eye. It’s not every day a region shrugs off global trade wars and posts gains. I suspect investors are betting on its proximity to the US and lighter tariff burdens. Gold, meanwhile, is the classic safe-haven asset. When markets get shaky, it’s like a financial security blanket—reliable and comforting.
Sectors That Took a Beating
Not every sector was so lucky. Some got pummeled, and the numbers tell a grim story. Here’s a quick rundown of the biggest losers.
| Sector | % Total Return |
| North American Smaller Companies | -21.7% |
| Technology & Innovation | -17.6% |
| North America | -15.6% |
| Healthcare | -11.4% |
| Global | -9.9% |
The North American smaller companies sector got hit hardest, and it’s not hard to see why. Tariffs drive up costs, and smaller firms don’t have the margins to absorb the blow. Technology stocks, once the darlings of Wall Street, also took a dive. I’ve always thought tech valuations were a bit frothy, so this correction doesn’t shock me. Still, it’s painful for anyone heavily invested in these areas.
Funds That Stole the Show
Some funds managed to shine despite the chaos. Gold funds, in particular, have been on fire, riding the wave of soaring bullion prices. Here’s a look at the top performers.
- Ruffer Gold Fund: A whopping 24% return, thanks to gold’s rally.
- Ninety One Global Gold: Close behind with 22.6%.
- BlackRock Gold & General: Delivered 21.6% as investors flocked to precious metals.
- Artemis SmartGARP European Equity: A surprise contender with 13.6%, proving Europe’s resilience.
Gold funds are the clear winners here. I’ve always had a soft spot for gold—it’s like the investment world’s old faithful. When everything else goes haywire, it tends to hold its own. European equity funds also intrigued me. They’re less exposed to US tariff drama, which might explain their solid performance.
Gold’s not just a metal; it’s a lifeline when markets get dicey.
– Investment strategist
Funds That Flopped
On the flip side, some funds got crushed. US-focused funds, especially those betting on smaller companies, bore the brunt of the market’s wrath.
- Artemis US Smaller Companies: Down 26.5%—ouch.
- JPM Japan: Lost 25.7%, hit by trade tensions.
- Liontrust Global Technology: Dropped 24.6% as tech stocks tanked.
- CT American Smaller Companies: Fell 24.1%, reflecting small-cap struggles.
These numbers sting, especially for anyone banking on tech or US small-caps. The lesson here? Diversification matters. If your portfolio’s all-in on one sector, a shock like this can wipe out years of gains. I’ve learned that the hard way in my own investing journey.
Investment Trusts: Hidden Gems and Big Losers
Investment trusts have been a mixed bag. Some have soared, while others have crashed spectacularly. Let’s unpack the highlights.
Top Trusts
Property and infrastructure trusts have been a bright spot, offering stability and income in a rocky market.
- Harmony Energy Income Trust: Up 52.1%, a standout in renewable energy.
- Urban Logistics REIT: Gained 41.3%, fueled by demand for logistics properties.
- Warehouse REIT: Rose 39.1%, another logistics winner.
- Golden Prospect Precious Metals: Climbed 33.8%, riding the gold wave.
Property trusts are killing it, and I’m not surprised. With gilt yields easing and valuations looking attractive, investors are piling in. Energy storage trusts also caught my attention—clean energy’s a long-term bet that’s starting to pay off.
Trusts That Tanked
Not every trust weathered the storm. Some got hammered, especially those tied to growth or niche markets.
- Blue Star Capital: Plummeted 60.4%—a brutal drop.
- Jade Road Investments: Down 42.1%, reflecting Asia-focused struggles.
- Digital 9 Infrastructure: Fell 38.8%, hit by market sentiment.
- Kingswood Holdings: Lost 34.1%, a victim of volatility.
These losses highlight a key point: investment trusts can be riskier than open-ended funds. Their use of gearing amplifies both gains and losses, and widening discounts to net asset value (NAV) can make things worse. If you’re dipping into trusts, make sure you’re ready for the ride.
What’s Driving These Trends?
So, what’s behind this market madness? A few key factors stand out.
- Tariff Uncertainty: Businesses hate unpredictability, and Trump’s trade policies have left them scrambling.
- US Dollar Slide: A weaker dollar has hit UK investors hard, especially those with US exposure.
- Gold’s Appeal: As a hedge against chaos, gold’s been a magnet for nervous money.
- Property’s Comeback: Falling yields and cheap valuations have made property trusts a safe bet.
I find the dollar’s slide particularly intriguing. It’s not just about tariffs—it’s about global confidence in the US economy. If that wanes, we could see more pain for US-focused funds. On the flip side, gold’s rally feels like a classic flight to safety. It’s not sexy, but it works.
How to Play the Market Now
With all this in mind, where should you invest? Here’s my game plan for navigating the next few months.
- Diversify Globally: Don’t put all your eggs in the US basket. Look at Europe and Latin America for growth.
- Lean into Gold: Gold funds or ETFs can hedge against further volatility.
- Explore Property Trusts: Logistics and infrastructure trusts offer income and stability.
- Avoid Overpriced Tech: Tech stocks are still shaky—wait for a better entry point.
- Stay Liquid: Keep some cash on hand for opportunities as markets settle.
I’m a big believer in diversification, especially in times like these. Spreading your bets across regions and asset classes can save you from a tariff-induced headache. And don’t sleep on property trusts—they’re not glamorous, but they’re delivering right now.
The Road Ahead
Trump’s first 100 days have been a wake-up call for investors. Markets hate uncertainty, and there’s plenty of that to go around. But here’s the silver lining: volatility creates opportunities. By focusing on resilient sectors like gold and property, and steering clear of battered areas like tech and small-caps, you can position your portfolio for success.
What’s next? I’m keeping a close eye on Trump’s trade policies and the US dollar. If tariffs ease, we might see a rebound in some beaten-down sectors. Until then, play it smart, stay diversified, and don’t let the headlines scare you out of the market. After all, as any seasoned investor knows, chaos often breeds opportunity.
In volatile markets, the patient investor often comes out ahead.
– Financial advisor
So, what’s your next move? Are you doubling down on gold, eyeing property trusts, or sitting tight? Whatever you choose, make sure it’s a decision you can sleep on. Markets will keep swinging, but a solid strategy will keep you grounded.
