In the ever-shifting landscape of global markets, sometimes looking back can help us move forward.
You may recall a book with a similar title to this article. Here’s an analysis of how the principles of this book are currently being applied.
Think Big
Current Application: Mixed.
While proposing ambitious tariffs (up to 60% on Chinese imports), the market reaction has been negative, with US stocks down 12.46% YTD 2025.
Impact: Big moves are causing significant market volatility rather than positive outcomes.
Protect the Downside
Current Application: Poor.
Recent tariff policies have pushed the global economy "to the brink" according to latest reports.
Impact: S&P 500 down 13.93% since November 2024, showing failure to protect market downside.
Maximise Options
Current Application: Limited.
Recent policy shifts show inflexibility, though the US did reverse course on some tariffs after bond market concerns.
Impact: Had to retreat from initial tariff stance due to market pressure.
Know Your Market
Current Application: Declining.
Recent reports show DT is less responsive to market signals than in the first term.
Impact: Market confidence declining, with tech sector (Magnificent Seven) down significantly recently.
Strategic Adaptability
Current Application: Improving (sustainable?).
Recent news shows a pulled back from aggressive tariff stance after seeing market reaction.
Impact: Markets rebounded after his policy retreat, showing some adaptability.
Building Strong Relationships
Current Application: Challenging.
Recent policies have strained international trade relationships.
Impact: Global markets showing increased volatility due to uncertainty in international relations.
Market Timing
Current Application: Poor.
Recent market timing decisions have led to significant market drops.
Impact: Caused what's being reported as "worst day of 2025" for Wall Street.
Brand Building
Current Application: Mixed.
While maintaining strong political base, business community support is wavering.
Impact: Some previous business supporters are now speaking out against policies.
Risk Assessment
Current Application: Concerning.
Recent policies show less consideration of market risks.
Impact: Fears of potential bond market catastrophe influenced recent policy reversals.
Long-term Vision
Current Application: Unclear.
Current focus appears more on immediate impact rather than long-term stability.
Impact: Creating uncertainty in global markets about future trade relationships.
Moving Forward
While markets continue to respond to policy shifts and global tensions, our disciplined approach remains unchanged. We focus on protecting your wealth while seeking strategic opportunities for growth.
Remember, successful investing isn't about predicting every market move – it's about maintaining a disciplined approach while staying alert to opportunities that arise during uncertainty.
Here to help.
Kylie Harding is an Investment Adviser who believes in free access to information about building financial literacy at every stage in life. Contact Kylie today on [email protected] or 02 9998 4206.
