Schroders' Johanna Kyrklund: Trump's tariffs risk rapidly moving from unknowable to analysable

'Bad news can be priced'

It has been a dramatic start to the year - DeepSeek's disruption of the AI narrative, a seismic shift in defence and infrastructure spending out of Germany and, of course, ‘Liberation Day’.

As a result, we initially witnessed significant divergence in performance across and within asset classes and, more recently, a severe correction. As always, we need to take a step back to gain some perspective. We have talked a lot in recent years about a major shift in the investment regime driven by a rejection of the political consensus which dominated western policy from the 1990s onwards; a focus on fiscal rectitude combined with loose monetary policy and a highly globalised economy. The challenge with this model, particularly in the 2010s, as interest rates moved to zero or ...