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Liberation day?

April 4, 2025 By Rob Gilmour

Markets have once again responded sharply to escalating trade tensions, as President Trump announced sweeping new tariffs on key US trading partners — branding it a “Liberation Day” initiative aimed at reshaping global trade. The reaction has been swift.

The broader sell-off reflects rising concerns that renewed trade tensions could lift inflation, disrupt global supply chains, place pressure on economic growth, and bring on a recession. Trump has previously warned that the US economy may face some “short-term pain” — a remark that has weighed on investor sentiment. Continued uncertainty will likely prompt central banks — including the Reserve Bank of Australia — to consider further interest rate cuts, bringing welcome relief in other parts of the economy.

I discuss this and more in our quarterly update video below.

While market conditions have become more turbulent, our view remains unchanged. We continue to monitor developments closely and, while there is no need to adjust your portfolio at this stage. Your portfolio remains anchored by a well-diversified mix of growth and defensive assets — a structure designed to provide stability and resilience through periods of market volatility.

Investing in shares and other growth assets has historically delivered higher returns over time, while more defensive investments like cash and bonds help cushion short-term volatility. Consider these key points:

  • Markets recover — While short-term declines are expected, long-term trends have remained upward.
  • Growth outperforms — Historically, shares have outpaced inflation and outperformed defensive assets.
  • Timing the market is risky — Missing even a few key rebound days can significantly reduce long-term returns.

For those still accumulating wealth, downturns can be an opportunity to buy more at lower prices. For those in retirement, portfolios are designed with income-producing and defensive assets to support your near-term needs. No matter your stage, the best approach remains:

  • Stay invested
  • Stay diversified
  • Stay focused on your goals

We’re here to support you through all market conditions.

Rob Gilmour is the Managing Principal of Wealth Simplicity. The information provided should not be considered personal financial advice as it is intended to provide general advice only. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions.

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Wealth Simplicity Pty Ltd as trustee for the MORE Wealth Trust (ABN 28 939 572 082) and

Rob Gilmour are Authorised Representatives of Wealth Simplicity Group Pty Ltd Australian Financial Services Licence (AFSL) 513615.


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