The recent imposition of tariffs on 60 economies has sent shockwaves through the investment community. According to Nigel Green, CEO of deVere Group, this situation exposes significant vulnerabilities in portfolios that were thought to be diversified.
Many investors have relied on the assumption that diversification would protect them from market shocks. However, the reality is that numerous portfolios share common supply chains, which can lead to correlated risks.
As the global economy faces these new challenges, investors are urged to reassess their strategies and consider the implications of such widespread tariff changes on their investments.