Australian investors fret over Trump’s trade | Australian Markets

While Australian investors have overwhelmingly expressed their unease over the US’s trade insurance policies and their affect on their investments, based on a new investor survey, a substantial quantity are staying the course with their asset combine.

The survey, performed by ASX-listed investment platform InvestSMART, discovered the US’s trade insurance policies weighing closely on the minds of native investors, with practically 9 out of 10 (88%) respondents expressing their disquiet over Trump’s tariffs, with more than half stating they had been “very concerned”.

Despite the outward concern over share market volatility, practically half (47%) mentioned they’ve, thus far, had no want to change their investment methods. Only round 10% mentioned they’d contemplate making adjustments if the volatility continued.

Of the more than 50% which have modified their methods in a roundabout way, many have taken benefit of the share market drop to increase their investments. A smaller proportion (round one-third of the changers) have taken the alternative tack, holding off on shopping for new investments.

Around 14% of the changers have bought investments to cut back risk, whereas 12% have shifted to more conservative property reminiscent of money and bonds.

Commenting on the outcomes of the survey, InvestSMART chief government Ron Hodge famous that investors are “clearly” acutely aware of the impacts of US tariffs on their investments.

Despite the priority expressed, he welcomed the numerous quantity of investors avoiding “a knee-jerk response” to the US’s ‘reciprocal tariff’ regime – an attempt by the Trump Administration to steadiness bilateral trade deficits between the US and its trading companions by way of tariffs.

InvestSMART notes that almost half (47%) of its surveyed investors describe themselves as ‘experienced’, which displays their largely restrained response to tariff-induced market volatility.

While a quantity of international locations and the EU have imposed retaliatory tariffs on the US, investors right here seem like much less inclined in direction of such motion, with round three-quarters of respondents stating that the Australian authorities shouldn’t undertake such an strategy.

Overall, investors have blended views on whether or not the Australian authorities ought to take additional steps to guard Australia from the consequences of world tariffs, with round one in three (33%) believing the native policymakers ought to keep away from a response.

“While for a lot of there are comprehensible query marks over what motion Canberra needs to be taking, Australian investors are rightly mindful of any potential financial – and asset market – fallout ensuing from introducing tariffs in opposition to the US.

Hodge concluded: “Right now, we are seeing a fast-evolving situation driven by the introduction of US tariffs. Australian investors are taking a measured approach, but their views should send a strong message to the Federal Government.”