Many investors were caught off guard when President Trump announced new trade tariffs and the global stock markets dropped. Their thinking was that Trump would not do anything too foolish and that there would be guardrails in place to soften his strong views on trade deficits. The investors were too optimistic.

This is a reminder of how unpredictable markets can be, especially in the short term.

Many mainstream economists agree with the view of President Trump and his advisers that the USA has too much debt, and that Americans are spending more than they can afford. They believe the country needs to reduce its debt.

Even though Trump’s methods are seen by some as harsh, many experts say he is reacting to a real problem – China has become a strong trading country that subsidises and gives much support to its own companies. Trump believes this has hurt American manufacturing and says that tariffs will help restore it.

Trump’s plan is simple – raise tariffs to boost US manufacturing. If manufacturing grows, the government will collect more tax money and reduce its debt. With a stronger economy and less debt, Trump hopes to keep taxes low for Americans. He also believes this will lead to fairer global trade. If this works, some say he could be remembered as one of America’s great presidents.

It is hard to predict how investments will perform in the short term – it is mostly guesswork. What matters much more is the bigger picture – are there big changes happening that will affect returns over time?

The key question is whether the USA will keep moving towards protectionism or whether it will stay committed to global trade, but in a fairer way. We believe that the USA will continue to support global trade over the long term.

Even though markets have dropped and things feel uncertain, the outcome could still be positive. We may see fairer global trade and smarter use of public money to build stronger, more competitive economies. Sometimes challenges can lead to better results.

The best way to handle uncertainty is to spread investments across different types of assets and regions. The trustees and their investment committee follow a solid process for determining the Fund’s investment strategy.

This approach may not always deliver quick rewards, but over time it can help protect your savings and grow them steadily.