Is Your Portfolio Prepared for Economic Uncertainty?

A tariff is a tax that a government places on imported goods. It’s like a toll that foreign products must pay before they can be sold in a country. Governments use tariffs to encourage people to buy local products instead of imports, protect domestic industries, or raise revenue.

A Simple Example of How Tariffs Work

Imagine you want to buy a car from another country that costs $20,000. If your government places a 10% tariff on imported cars, that car now costs $22,000 ($20,000 + $2,000 tariff). The idea is that if the price of the imported car goes up, more people will consider buying a similar car made locally, which helps domestic car manufacturers.

But tariffs also have downsides. If the local industry doesn’t produce enough of that product or if the quality isn’t as good, consumers might end up paying higher prices without better choices. Tariffs can also lead to trade wars, where countries impose tariffs on each other’s goods, making global trade more expensive and unpredictable.

How Does This Impact Your Investments?

Periods of rising tariffs, inflation, and economic uncertainty can lead to market volatility. Many investors make the mistake of reacting to headlines, adjusting their portfolios too frequently in response to short-term events. But successful investing isn’t about trying to predict market movements—it’s about having a strong plan that’s built to withstand economic ups and downs.

Is your investment strategy structured to handle market turbulence? If you’re not sure, it might be time to reassess your portfolio.

A Smarter Approach: Diversification and Discipline

Rather than reacting emotionally to economic events, a well-balanced portfolio spreads out risk. Diversifying across different asset classes—stocks, bonds, and income-producing investments—helps absorb market ups and downs.

Today, investors aren’t limited to their home country. Global investing allows you to gain exposure to economies, industries, and currencies worldwide. That means no single government policy, tariff decision, or economic slowdown should be able to derail your retirement plan—if your portfolio is structured correctly.

But is yours? Have you considered how well your investments are protected from economic shifts?

Are You Taking on Unnecessary Risk?

For those who rely on their investments for retirement income, portfolio structure matters even more. A properly designed plan should include stable income-producing assets—such as high-interest savings accounts, GICs, bonds, and dividend-paying stocks—that provide cash flow and help smooth out volatility.

If your investments are too aggressive or concentrated in specific markets, you could be taking on more risk than necessary. Are you confident that your portfolio is optimized for long-term stability?

Staying the Course in Uncertain Times

Market ups and downs are inevitable, but your ability to stay disciplined is what truly determines your financial success. The biggest mistake investors make is reacting emotionally to short-term declines. History shows that those who panic and sell during downturns often miss the recovery. Those who stay invested in a well-structured portfolio see better long-term results.

Would your current investment approach keep you on track during the next market downturn? Or would uncertainty push you into making decisions that could hurt your long-term goals?

The Bottom Line

Tariffs, inflation, and economic shifts will always be part of investing. The real question is whether your financial plan is built to handle them. The key to success is staying diversified, managing risk, and maintaining discipline—even when the economy feels uncertain.

If you’re unsure whether your portfolio is structured to withstand market fluctuations, now is the time to take a closer look. The right investment strategy isn’t just about growing wealth—it’s about protecting it.

Is your financial plan truly built to weather uncertainty? Click link in bio if you want a second set of eyes on how your portfolio and plan have been constructed.

This information has been prepared by Brandt Butt, Investment Advisor and Portfolio Manager.

This information has been prepared by Brandt Butt who is an Investment Advisor and Portfolio Manager for iA Private Wealth Inc. and does not necessarily re?ect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.