President Trump’s recent tariff escalation has ignited a fresh wave of volatility across equity and fixed-income markets, reintroducing policy risk as a dominant force in portfolio decision-making.
The administration’s 90-day pause on most reciprocal tariffs may offer temporary relief, but the broader trade tensions have already triggered a reevaluation of global growth assumptions and increased the likelihood of an economic slowdown.
For financial advisors guiding clients through turbulent markets, the insights of seasoned investment managers offer a window into how to reposition portfolios for both risk mitigation and selective opportunity.
Chris Davis, Davis Advisors
Chris Davis, chairman and portfolio manager at Davis Advisors, views the recent tariff-induced volatility as a catalyst revealing deeper structural transitions already underway: the end of ultra-low interest rates, the retreat of globalization, and the disruptive ascent of artificial intelligence. These forces, Davis believes, were underappreciated by investors until the market was jolted out of complacency.
For advisors managing client allocations, Davis points to the financial sector as a compelling contrarian opportunity. Despite healthy capital ratios and sound credit performance, banks have been disproportionately punished in the recent downturn. He highlights Capital One as trading at a forward P/E of just 9, a valuation that he argues doesn’t reflect its underlying strength.
Davis also sees opportunities in beaten-down tech names like Applied Materials, benefiting from semiconductor reshoring trends, and Amazon, which has declined over 20% year-to-date—outpacing losses in traditional retailers like Walmart and Costco. For long-term investors, Davis suggests this moment offers the chance to re-enter quality names at discounts not seen in years.
Cathie Wood, ARK Investment Management
Cathie Wood, CEO of ARK Investment Management, frames tariffs as unequivocally recessionary. “Tariffs are a tax, and taxes drag on GDP,” she states, while expressing hope for a new global agreement akin to the 1985 Plaza Accord to unwind protectionist barriers.
For financial professionals, Wood’s view underscores the need to look beyond near-term dislocation and position for a post-recession recovery. Her focus remains on innovation leaders that help others reduce costs and improve productivity. She singles out Palantir as a strong AI beneficiary and maintains conviction in Tesla’s long-term potential, especially as the company prepares to roll out a lower-cost model and expand its robo-taxi initiative.
While the administration's credibility with markets may be fraying, Wood emphasizes that cycles of fear often fuel innovation. “Companies that help others do things better, cheaper, and faster tend to outperform when the dust settles,” she says.
Bill Campbell, DoubleLine
Bill Campbell, portfolio manager at DoubleLine, welcomes the 90-day tariff reprieve but warns that the ambiguity surrounding the administration’s broader trade objectives creates ongoing risk. For multinational corporations, uncertainty around global capital planning is particularly challenging.
Campbell is cautious on long-duration Treasuries given the U.S. fiscal trajectory and mounting deficits. He warns that foreign capital—which has historically been a stabilizer in U.S. financial markets—could begin reallocating to more predictable regions. Advisors overseeing globally diversified fixed-income portfolios should note that DoubleLine is reducing risk by increasing exposure to “core” markets like Germany and selectively adding in high-quality Eastern European debt such as Czech bonds.
Campbell also identifies Japan’s government bonds as attractive short-duration safe havens, given the yen’s historical role as a flight-to-safety asset. On the emerging markets side, he sees relative opportunity in Latin America, which has been less targeted by U.S. trade policy so far, and could benefit from reshoring dynamics.
Mario Gabelli, Gabelli Funds
Veteran investor Mario Gabelli contextualizes the current turmoil within a long history of recessions and recoveries. While he supports the idea of narrowing America’s trade deficit, he criticizes the “erratic” implementation of tariffs, which he believes has severely damaged investor confidence.
Gabelli’s core strategy in this environment is to focus on valuation dislocations. He cites opportunities in companies with solid fundamentals that have been caught in the market downdraft. “If a company with good management was trading at $39 last week and is now $30 with no change in outlook, that’s where we want to buy,” he says.
He anticipates a wave of share repurchases by companies seeking to capitalize on depressed valuations and believes the market could rebound later in the year, ending flat or modestly higher. However, he notes that geopolitical flashpoints—including tensions with Iran—could inject further volatility into the mix.
Saira Malik, Nuveen
Nuveen CIO Saira Malik expects elevated volatility to persist, citing the tariff regime’s stagflationary potential. Unlike the trade disputes during Trump’s first term—which unfolded amid low inflation and interest rates—today’s macro environment offers less flexibility for the Fed to respond.
Malik encourages a strategic pivot toward companies with strong domestic revenue exposure and operational resilience. She favors infrastructure stocks and firms with consistent dividend growth, noting their defensive characteristics in recessionary settings. She also sees tactical upside in Europe due to increased fiscal stimulus, and in India, whose economy is more insulated from global trade frictions.
In fixed income, Malik recommends high-quality senior loans and municipal bonds while warning that a breach of 5% on the 10-year Treasury would mark a significant stress signal. For advisors allocating to fixed income, her view reinforces the importance of quality and duration control.
Rajiv Jain, GQG Partners
Rajiv Jain, CIO of GQG Partners, argues that the market is undergoing a more fundamental shift than what occurred during the pandemic. With the unwinding of decades of monetary and fiscal tailwinds, U.S. equity valuations are unlikely to sustain pre-2022 multiples. “This is a new era,” he says, and lower valuations are now justified.
He expects tariffs to trigger a growth slowdown, though not a repeat of the Great Depression. Jain believes that exporters and retailers will absorb much of the price impact, limiting the inflationary burden on consumers.
For wealth managers, Jain offers a strong case for global diversification. He prefers European financials, citing regulatory tailwinds and increased investment in defense and infrastructure. India and Brazil also stand out due to strong earnings growth and favorable policy environments. Within the U.S., he highlights energy companies like Chevron and regulated utilities such as NextEra Energy as durable cash flow generators amid the volatility.
Michael Cuggino, Permanent Portfolio Family of Funds
Michael Cuggino, president of the Permanent Portfolio Family of Funds, notes that gold remains one of the few asset classes posting gains in 2025. His fund’s 21% allocation to gold has helped it weather the broader equity downturn. For RIAs looking to add ballast to portfolios, he believes the case for gold remains intact, supported by geopolitical uncertainty, central bank demand, and the potential for policy-driven inflation.
Cuggino is also overweight energy, with nearly 30% of his portfolio dedicated to the sector. He owns Texas Pacific Land as a proxy for U.S. oil production in the Permian Basin. While energy names have corrected post-tariff announcement on demand concerns, he argues their long-term fundamentals remain attractive.
Energy stocks, currently trading at a discount to broader indices, offer value not only as inflation hedges but as necessities in a still-carbon-dependent world. “It’s naive to think we don’t need energy,” he says, signaling that energy should continue to play a role in strategic asset allocation.
Conclusion
Advisors navigating the current landscape must balance defensive positioning with opportunistic buying as valuations compress. From AI-driven innovation to emerging market resilience and undervalued U.S. financials, the message from this cohort of managers is clear: dislocations create entry points.
The market remains fragile amid ongoing trade uncertainty, but the tools to protect capital—short duration fixed income, quality dividend growers, precious metals, and international diversification—are familiar. For RIAs guiding client portfolios through this period, strategic patience and selective conviction will be critical to preserving long-term wealth.
