Peta-Rose Hall - FILE PHOTO
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Peta-Rose Hall, Managing Director, BPM Financial
BPM Financial's Managing Director, Peta-Rose Hall, says, while the new U.S. tariffs are sparking short-term uncertainty in the stock market, investors should not panic because normality will eventually be restored.
Ms Hall, speaking Sunday on Radio Jamaica's That's A Rap, said, as countries and international companies respond and adjust their operations to the tariffs, there will be drastic changes in the US stock markets.
She urged caution however on the part of those making investment decisions in panic, sharing statistics to back her position: "If you've missed the market's ten best days over the last 30 years your returns would have been cut in half, and also missing the best 30 days would have reduced your returns by an astonishing 80 per cent."
The strategy of "jumping out and jumping back in" is likely to fail, she cautioned, "because we don't know the exact right time to jump back in," adding that "markets do recover very quickly just like how they fall very quickly."
She added that the price of bonds will likely increase during the short to medium term as their demand will go up.
The yields on bonds are being driven down, she explained, "because some people jump out of the (stock) market and then they buy bonds while they are waiting for (the) volataility to subside."
As a result, she said, "the yields are falling on bonds as the bonds are becoming more expensive as demand has increased."
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