#MarketTurbulence Market turbulence is a current concern due to various factors, including ¹ ² ³:

- *Global Trade Tensions*: The US has reinstated and expanded tariffs on certain Chinese tech and automotive imports, causing market volatility. Companies with domestic supply chains and strong government ties may be better positioned to outperform.

- *Tariff Uncertainty*: The weighted average of announced US tariff rates has risen above 18%, potentially impacting global trade and economic growth. Oxford Economics expects trade to decline by 3% from Q2 2025-Q1 2026.

- *Inflationary Pressures*: Inflation is easing in advanced economies but remains a concern in developing countries. The US inflation rate is expected to rise above 3% by year-end, potentially influencing the Federal Reserve's policy decisions.

- *Geopolitical Risks*: Rising tensions and policy uncertainty are contributing to market fluctuations. Investors are focusing on event-driven catalysts like policy shifts, earnings surprises, and geopolitical developments.

*Market Trends:*

- *Resilience Amidst Uncertainty*: Despite volatility, markets have shown resilience, with the S&P 500 Index gaining over 5% in the first half of 2025. Large-cap stocks have outperformed small caps, and growth stocks have led value stocks.

- *Economic Growth*: The global economy is expected to grow at a moderate pace, with the US economy projected to expand by 1.7% in 2025. China's growth is forecasted to slow down to 4% in 2026 due to trade tensions ⁴ ¹.

*Investor Strategies:*

- *Quality Focus*: Identifying companies with strong fundamentals and solid growth prospects is crucial in uncertain markets. Large-cap equities, particularly value stocks, and mid-cap equities may be attractive options.

- *Adaptability*: Investors need to stay agile and adapt to changing market conditions, focusing on verified, high-probability trades and timing entries and exits perfectly ⁴ ².