While the FTSE 100 started the year well, it’s now been well and truly caught up in the global trade war. On Friday, the blue-chip stock market index fell about 5%. Today, it’s down another 5%.
These falls are no doubt a little scary for a lot of investors. Right now, many are in panic mode. I’m not though – here’s a look at how I’m handling the current environment.
It’s a mess
The economic situation really is a mess. As a result of Donald Trump’s tariffs, there’s a huge amount of uncertainty. One major issue is that many companies could be looking at significantly lower earnings as a result of the tariffs.
Take a company like Rolls-Royce, for example. It sources components for its engines from a range of different countries. So it could take a substantial hit from the tariffs.
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