Investors should remain disciplined, patient and focused in the long term in an environment marked by US President Donald Trump-driven volatility and elevated interest rates, analysts say.
Several factors have combined to drive the current sell-off in global equity markets.
Firstly, Mr Trump’s aggressive trade and tariff policies have heightened geopolitical tensions and disrupted international trade flows. His administration’s unpredictability has triggered significant investor uncertainty and reduced confidence across markets worldwide, according to Jacob Falkencrone, chief investment strategist at Saxo Bank.
“Secondly, markets are increasingly pricing in recession risks, particularly in the US. Mr Trump's ambiguous statements regarding the economy’s health and the ongoing disruption from tariffs have intensified these fears,” he says.
“Additionally, persistently high interest rates, driven by sustained inflationary pressures, are squeezing corporate profits and consumer spending. Finally, the equity sell-off has been amplified by investor repositioning away from ‘Magnificent Seven’ technology companies, which dominated portfolio returns for years but have recently faced sharp corrections amid lowered growth expectations, increased competition and geopolitical pressures.”
Equities sentiment has soured rapidly in recent weeks as economists withdraw their expectations for economic growth based on the potential for a trade war.
At the same time, the mega-cap tech stocks that have largely driven the S&P 500’s more than 50 per cent gain over the past two years are caught in a sell-off, as investors grow doubtful about the immediate future of artificial intelligence and, more broadly, retreat from riskier growth assets.
Adopt a long-term view, diversify
Vijay Valecha, chief investment officer at Century Financial, says the acceleration of retail outflows from US equities confirms the move towards more defensive investment bets as people try to safeguard their portfolios in uncertain times.
The frantic trading activity witnessed among 401(k) holders during the sell-off is evidence of increased market nervousness and the need to ride through volatile market environments, he adds.
“A long-term view is perhaps the most critical rule that retail investors must follow during volatile markets. Rash decisions in response to volatility can result in poor decisions. Conversely, a well-considered investment plan may enable investors to ride out the storm and take advantage of opportunities over the long term,” he suggests.
“Diversification is perhaps the most important strategy that retail investors can use during periods of high market volatility, where one invests across different asset classes, sectors and regions to reduce the exposure to risk from any single market or sector.”
Mr Falkencrone recommends investors to look beyond US mega-cap tech stocks, “whose era of easy performance appears to have ended”. Instead, they should consider spreading investments across different sectors and geographic regions, including European markets, which are benefiting from strong fiscal stimulus and increased investments in defence and infrastructure. European equities also currently offer more favourable valuations compared to US markets, providing a potential margin of safety, he says.
Selective exposure to emerging markets, particularly in Asia, also presents opportunities given attractive valuations and targeted economic stimulus measures, he reckons.
Moreover, investors should focus on high-quality, dividend-paying stocks and regularly rebalance portfolios, he suggests.
Strategies to follow
Michael Chu, head of investments at Sarwa, says if investors are primarily in US markets, dollar-cost averaging – consistently buying over time, especially during dips – can be an effective approach. Also, look for quality companies if investing in individual stocks and stay cautious about inflation risks, he advises.
Mr Valecha suggests considering dividend calendar investing, as it involves investing in a diversified portfolio of dividend stocks with staggered payout dates throughout the year. This will create a reliable income stream instead of a single payout date, he explains.
Also, retail investors can make use of laddering, where they invest a fixed amount of money regularly, regardless of what happens in the market. By investing a fixed amount regularly, you will buy more shares when the market is low and fewer shares when the market is high, Mr Valecha points out.
Apart from this, hedging instruments like options or inverse exchange-traded funds exist where investors can mitigate against potential losses during times of higher market volatility and uncertainty, he adds.
What assets to invest in?
To effectively navigate this challenging period, investors should build portfolios around a combination of asset classes.
Tony Hallside, chief executive of STP Partners, picks gold as a reliable safe-haven asset, often rising when equity markets stumble, as investors seek protection against uncertainty. It has historically performed well during economic downturns and geopolitical stress, making it a strong defensive play, he says.
Government bonds, particularly US Treasuries, and high-quality investment-grade bonds also offer a degree of security, with their lower risk profile and potential for price appreciation if interest rates eventually decline.
“Beyond traditional defensive assets, the healthcare sector presents an attractive opportunity. It tends to be less correlated with economic cycles, as demand for healthcare services remains steady regardless of broader market conditions,” Mr Hallside says.
“Infrastructure investments, including utilities and essential services, provide another layer of stability since they generate consistent cash flows even during downturns.”
Maintaining some liquidity in cash or short-term instruments allows investors to stay flexible and capitalise on opportunities when the market presents attractive entry points, he adds.
Market pullbacks can present buying opportunities in US equities, particularly for high-quality companies that may be temporarily undervalued
Michael Chu,
head of investments, Sarwa
Mr Chu from Sarwa cites how some investors might look to commodities such as oil, agricultural products and industrial metals, which can benefit from supply and demand shifts. Real estate investment trusts also offer exposure to real estate while providing potential income, he says.
“Market pullbacks can present buying opportunities in US equities, particularly for high-quality companies that may be temporarily undervalued. Investors often use downturns to accumulate shares at lower prices, taking advantage of discounted valuations before the market recovers,” Mr Chu suggests.
Mr Valecha suggests investors should seek out companies with a track record of paying consistent dividends, such as REITs, utilities and consumer goods companies.
“Index funds or ETFs that follow a wide market index, like the S&P 500, can diversify and lower exposure to single stock risk,” he says.
“A diversified portfolio that includes high-quality bonds, dividend-paying stocks, index funds or ETFs can help investors navigate periods of volatility. However, investors must assess their investment goals, risk tolerance and time horizon before investing in any asset class.”
Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
more from Janine di Giovanni
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
WORLD'S%2010%20HIGHEST%20MOUNTAINS
%3Cp%3E1.%09Everest%0D%3Cbr%3E2.%09K2%0D%3Cbr%3E3.%09Kangchenjunga%0D%3Cbr%3E4.%09Lhotse%0D%3Cbr%3E5.%09Makalu%0D%3Cbr%3E6.%09Cho%20Oyu%0D%3Cbr%3E7.%09Dhaulagiri%0D%3Cbr%3E8.%09Manaslu%0D%3Cbr%3E9.%09Nanga%20Parbat%0D%3Cbr%3E10.%09Annapurna%0D%3C%2Fp%3E%0A
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
UAE currency: the story behind the money in your pockets
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
More from Neighbourhood Watch:
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
ESSENTIALS
The flights
Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes.
The trip
From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.
RESULT
Bournemouth 0 Southampton 3 (Djenepo (37', Redmond 45' 1, 59')
Man of the match Nathan Redmond (Southampton)
Racecard
6.35pm: American Business Council – Maiden (PA) Dh80,000 (Dirt) 1,600m
7.10pm: British Business Group – Maiden (TB) Dh82,500 (D) 1,200m
7.45pm: CCI France UAE – Handicap (TB) Dh87,500 (D) 1,400m
8.20pm: Czech Business Council – Rated Conditions (TB) Dh105,000 (D) 1,400m
8.55pm: Netherlands Business Council – Rated Conditions (TB) Dh95,000 (D) 1,600m
9.30pm: Indian Business and Professional Council – Handicap (TB) Dh95,000 (D) 1,200m
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
Match info
Liverpool 4
Salah (19'), Mane (45 2', 53'), Sturridge (87')
West Ham United 0
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
Essentials
The flights
Etihad (etihad.ae) and flydubai (flydubai.com) fly direct to Baku three times a week from Dh1,250 return, including taxes.
The stay
A seven-night “Fundamental Detox” programme at the Chenot Palace (chenotpalace.com/en) costs from €3,000 (Dh13,197) per person, including taxes, accommodation, 3 medical consultations, 2 nutritional consultations, a detox diet, a body composition analysis, a bio-energetic check-up, four Chenot bio-energetic treatments, six Chenot energetic massages, six hydro-aromatherapy treatments, six phyto-mud treatments, six hydro-jet treatments and access to the gym, indoor pool, sauna and steam room. Additional tests and treatments cost extra.
AUSTRALIA SQUADS
ODI squad: Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Josh Hazlewood, Marnus Labuschagne, Mitchell Marsh, Glenn Maxwell, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Twenty20 squad: Aaron Finch (captain), Sean Abbott, Ashton Agar, Alex Carey, Pat Cummins, Mitchell Marsh, Glenn Maxwell, Jhye Richardson, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
PROFILE BOX:
Company/date started: 2015
Founder/CEO: Rami Salman, Rishav Jalan, Ayush Chordia
Based: Dubai, UAE
Sector: Technology, Sales, Voice, Artificial Intelligence
Size: (employees/revenue) 10/ 100,000 downloads
Stage: 1 ($800,000)
Investors: Eight first-round investors including, Beco Capital, 500 Startups, Dubai Silicon Oasis, Hala Fadel, Odin Financial Services, Dubai Angel Investors, Womena, Arzan VC
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
