07.08.25 - Tariffs dominate headlines - investors ignore
In the latest developments, tariffs are once again making headlines:
Semiconductors: The US wants to imposed a 100% tariff on imported chips, aiming to force critical supply chains back home.
India: Penalized with additional tariffs due to ongoing oil trade with Russia.
Switzerland: As of today, a 39% blanket tariff is now in effect on Swiss goods entering the US. T
Pharma: A proposed 250% tariff on selected pharmaceutical imports is on the table
Markets: Despite the escalation, markets remain unfazed.
US Futures: Nasdaq +0.8%, S&P 500 +0.65%
Switzerland: Swiss Market Index +1.0% despite tariffs
Europe: Broad-based gains, major indices up more than +1%
My View: Markets appear desensitized to tariff headlines, treating them as noise and assuming eventual deals, delays, or walk-backs. That assumption could prove costly. The Swiss case shows this is no longer just rhetoric, it’s execution.
Investor positioning still reflects complacency: investors remain fully allocated to risk assets, with limited hedging and little exposure to defensive sectors.
In a market where risk is underpriced, it’s worth rethinking allocation.
Since July, I’ve been gradually taking chips off the table. One area where I see opportunities is the defensive sector largely ignored so far, Food & Beverage, offering long-term potential and limited downside with a attractive dividend yield.
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