The results of Trump’s tariffs are in, and it feels like a big flat pancake. Trump’s “Liberation Day” has sent global markets into chaos. At first, a cleverly engineered free fall seemed like a wild call, but if Trump can push rates down, he might be able to restructure the ridiculous U.S. debt at lower prices.
Or maybe it’s just hearsay. Who knows? Who cares?
If you are a global investor, there are plenty of opportunities around the world right now, as long as you tread carefully. The sell-off last night was massive, the biggest since the COVID days of 2020. The thing about markets is that there’s always a new “largest this” or “biggest decline since” some past date. While that’s true, it’s often not relevant to long-term objectives.

If you’re feeling pain from sitting on high losses, it’s time to rethink your strategy and approach to risk and diversification. A good portfolio doesn’t necessarily shield you from losses, but it should remain resilient when markets free fall.
I’m frequently asked what to do now—where to buy, what to watch, and what to look at. My current response, if pressed, is NOTHING. Do nothing at all.

If you react after the fact, it’s probably too late. Smart investors planned well ahead of this; they went to cash, took profits, and created a watchlist of ideas to act on when presented with discounted opportunities.
🚫 Don’t try to time the bottom…📉
Timing the market bottom is incredibly challenging; you need to know when a low is truly the last 52-week low. Buying the dip can work for long-term investing, but for short-term moves, what happens when you buy low and it falls even lower? It’s not a great strategy.
Right now, I’m just watching and observing. Even high-conviction positions that have plummeted are not ones I’m averaging down on. Quality companies can decline further as they get caught in the wider sell-off.
The adage “buy when there’s blood in the streets” is easier said than done. Most people lack the psychological makeup to deploy capital during or after large sell-offs. In this particular scenario, there is a buying opportunity, and plenty of bargains will arise. However, I don’t mind being late to the party, even if it means missing a few basis points buying on an uptick from a new low.
Patience is key. I am a long-term investor, which means that whatever happens during this market sell-off—whether I make new additions or offload positions—can’t be measured in this event, just like the last 20 sell-offs and no doubt the next 20 to come.
Thinking long-term means acting long-term. The market is very volatile right now. It’s different from massive corrections that were hard and fast followed by quick recoveries. We had a short-lived correction after a larger sell-off during February and March, and now we’re facing an even larger decline.
Trump Tariffs Wars are just getting started…
We don’t know what comes next—retaliation tariffs, more unusual announcements from Trump. We are uncertain about the world’s next move, which could cause this correction to deepen further.
It is essential to let the dust settle, observe market movements, and just sit idle and wait. Sometimes, what you don’t do is just as important as what you do. Not taking action right now is often harder said than done. We all want to take action.
I find myself guilty of constantly refreshing my brokerage account, monitoring prices like a hawk, staying tuned to announcements from companies, and watching market reactions. I’m spending an unusually large amount of time being active right now, just listening and trying to understand what might come next.
This obsession can lead to being too close to the situation. So, I plan to take a couple of days off to digest what I am seeing, come up with a game plan, and then evaluate everything across the board.
I’ve fared quite well, down a few percentage points in my small-cap fund in Australia, up in my Indian small-cap fund, and down in a few other areas. However, overall, my entire investment spectrum is up 1.27% for the year, while most everything around me is in the red. While these aren’t stellar returns, they’re enough to keep me moving forward.
Diversification is essential here. Although I typically hold concentrated positions in direct equities, it’s my broader multi-asset allocation that has allowed me to weather the storms.
💰 Keep some dry powder…ready to deploy.
I moved a significant amount to cash towards the end of last year, as valuations seemed stretched and other opportunities arose. This meant that the performance drag from direct equities didn’t hit me as hard as it could have if my allocation had been more heavily weighted towards stocks.
I have significant investments in Indian equities, Hong Kong, Australia, New Zealand, and some other developed markets, with very limited exposure to the US right now, both in terms of currency and equities. To me, this has been the saving grace of my portfolio.
This will pass, just like everything else. It always does. Markets move back up; capital markets always survive, and they always will. Those who are bearish on an economic collapse can join the many who have waited on the sidelines, and I don’t expect to hear anyone email me “I told you so” anytime soon.
It’s about money—the greed of humanity creates the next bull run, while fear leads to the next bear market. The cycle will continue.
💪 Strong fundamentals matter more than ever.
Right now, strong fundamentals in companies are important. Quality is essential. Many companies won’t recover from the wreckage; small caps have taken, and will continue to take, a beating. Balance sheet strength is crucial. Low to no debt, net cash, and strong, healthy financial positions are a must, not just a “nice to have.”
Key metrics to focus on include ROIC (Return on Invested Capital), gross margins, and avoiding customer concentration in impacted markets or sectors. Long-term tailwinds in the overall sector and market, as well as optionality in product and service offerings, are also vital.
Valuation is critical. Paying too much for future earnings and growth can lead to huge price reversals and losses, whether you’re a value or growth investor. I’ve purchased some Indian small caps with ridiculous P/E ratios and EV/EBITDA ratios, but their revenue CAGR is over 50%, with earnings growth closely behind. The long-term picture is intact, and these companies are compounding at rapid rates, which justifies high valuations—they can grow into them.
I don’t necessarily recommend this speculative approach, but I am confident in the sectors they fit into. High valuations for companies that already have huge market share or dominance in a sector cannot continue to compound indefinitely unless they have optionality; otherwise, the multiple will shrink.
💎 Quality will always be rewarded in these markets.
Buying quality companies at discounted prices due to being oversold is a good strategy, provided you do your homework.
Additionally, take profits. If you’ve had a great run with your investments, take some profits off the table. You never go broke taking a profit. Get some cash ready to deploy; don’t try to time the market. Watch closely and have a plan, because the plan is key.
For me, I am monitoring indexes, ETFs, individual companies, commodities, bonds, and various asset classes while noting potential entry prices. When those prices are reached, I assess the situation and, if warranted, take a position.
Going into corrections without a plan is unwise. I am currently building a new plan, as my initial notes are no longer relevant. The tariff announcements were worse than I expected, as they were for many others, so I have to adjust.
Some of the companies I own got caught up in these changes, which means I need to be flexible and adapt. That is what investing is about—adapting to changing conditions.
At this moment, I have no idea where the markets will head, where the bottom is, how much lower they may go, or if we are facing a recession or market crash. However, I do know that the market will recover, so I extend my view to the long term. This is just a small blip in the road.
Stay prepared and be vigilant out there.
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