In recent weeks, the news has been dominated by uncertainty surrounding the Trump administration’s economic and political decisions—something that has escalated in the past few days. The U.S. has announced a temporary pause in support for Ukraine following a public dispute with Zelensky, while new tariffs against Mexico, Canada, and China have been implemented. Europe and other countries are also expected to be affected. Such news can easily create uncertainty in financial markets and among investors.
For investors, it is crucial to distinguish between noise and real risk. Political turmoil can cause short-term market fluctuations, but this does not necessarily mean a lasting downturn or increased risk for your portfolio. History shows that markets have an impressive ability to absorb political changes and macroeconomic adjustments over time.
As Kjetil Solvik-Olsen writes in Aftenbladet, Trump’s agenda can likely be boiled down to two main points:
- Europe must take greater responsibility for its own region so that the U.S. can save resources and costs to focus on China.
- The U.S. debt and trade balance must be corrected, with tariffs being one of the key tools.
Solvik-Olsen on Trump: “The guy is not stupid.”
These are by no means unreasonable political goals, but the way they are being pursued frightens many. We are used to politicians—especially in international contexts—behaving in an orderly, polite, and proper manner. When we now have someone who does not, and who is willing to use any means necessary to achieve their goals—whether verbal, economic, or political—it feels shocking and unsettling. That is why it is especially important to keep our focus on what truly matters.
How Should You Approach the Current Situation?
- No need to panic – Media coverage can seem dramatic, but reality is often more nuanced, and markets adapt quickly.
- Focus on fundamental values – The underlying value of your investments is what truly matters. At Stavanger Asset Management, our portfolios are continuously adjusted to reflect pricing and risk in the market.
- Diversification is key – A well-diversified portfolio reduces the risk of individual events. Investing across sectors and regions provides more stability.
- Long-term perspective – Market noise and short-term fluctuations rarely impact investment returns over several years. Maintaining a disciplined approach and sticking to your strategy often yields better results.
We Monitor the Markets for You
At Stavanger Asset Management, we closely follow market conditions and adjust our strategies accordingly. Our goal is to ensure that our portfolios remain resilient, even in times of political uncertainty. We focus on facts rather than fear and analyze how economic changes actually impact the markets—not just how they are portrayed in the media.
If you have any questions or would like a review of your portfolio, feel free to contact us. Our job is to ensure that you can invest with confidence, regardless of the headlines.
