Are you an expat investor eyeing the Chinese market? Perhaps you’ve heard about Alibaba stocks and wonder if they suit your portfolio. This article offers a balanced view of investing in Alibaba stocks, considering recent news, market analysis, and potential risks.

Understanding Alibaba’s Business Model

Before discussing Alibaba stocks, let’s examine Alibaba Group Holding Limited. Known for e-commerce dominance through Taobao and Tmall, its reach extends beyond online shopping. Alibaba has stakes in cloud computing (Alibaba Cloud), digital media and entertainment, and local services. It offers diverse investment ideas compared to traditional savings accounts.

E-commerce

Alibaba’s core business is e-commerce. It connects buyers and sellers. It earns revenue through commissions, advertising, and other services.

Cloud Computing

Alibaba Cloud offers cloud-based products and services. These cater to both individual and enterprise customers. AI-related products show strong performance, achieving triple-digit growth for five consecutive quarters.

Digital Media and Entertainment

This division manages Alibaba’s streaming platforms. It also includes their video games and music offerings.

Other Ventures

Alibaba has various other ventures. It offers solutions in logistics (Cainiao) and international digital commerce. This highlights the diversification inherent in Alibaba stocks. The company operates globally, with headquarters in China and the Cayman Islands.

Factors Influencing Alibaba Stocks

Several factors impact the performance of Alibaba stocks. Understanding these is key for any potential investor. These elements contribute to share price fluctuations.

Tariffs and Trade Regulations

Trump-era tariffs affect Alibaba stocks. The closing of specific loopholes threatens companies dealing in high volumes of smaller packages. This could harm their future growth, impacting competitors like Temu and Shein.

The removal of the “de minimis” exemption affects small package imports to the This tariff loophole targeted items under $800 from sites like Alibaba. This impacts the stock growth of various companies. U.S. retailers like Amazon may gain ground on competitors like Alibaba. Bloomberg and TipRanks have reported on this.

Some see Alibaba as a potential blue-chip stock trading at an advantageous price. As of January, some analysts held a ‘Buy’ position, despite previous growth struggles. For more in-depth information on tariff updates and today’s news related to personal finance and Alibaba Group Holding Limited’s performance in the stock market, explore resources beyond this article.

Chinese Economic Policies and Stimulus

On 24 September 2024, the People’s Bank of China launched a three-part economic stimulus. This includes cutting banks’ mandatory cash reserves, down payments for second-time home buyers, and funds for equity buybacks. While not directly targeting Alibaba stocks, these actions influence investor outlook. Consider these Chinese economic policies when evaluating Alibaba group holding’s stock performance alongside your other investment ideas, perhaps complementing existing savings accounts.

Regulatory Scrutiny and Compliance

As of 31 January 2025, Alibaba declared full regulatory compliance . It disclosed share movements, including buybacks. These announcements can impact investors’ perception of the stock’s stability. It’s wise to stay updated on the latest regulatory compliance news.

Alibaba Stock Performance and Investment Considerations

Despite challenges, analysts view Alibaba as a potential investment. It is particularly attractive for those interested in emerging markets. Alibaba stock remains a topic of discussion among those interested in trending stocks.

Market Sentiment and Analyst Ratings

In early 2025, analyst ratings on Alibaba stocks leaned towards “Strong Buy”. There were optimistic upside predictions. BABA ranked among the best-performing large-cap stocks favoured by hedge fund managers. Over 100 owned the stock, according to Insider Monkey.

In February, stock valuations plateaued amid tariff implications. Sentiment can shift rapidly depending on emerging challenges. These market fluctuations highlight the need for careful monitoring and risk assessment. This stock is being discussed by those interested in Trending Tickers, so it is worth exploring other information to stay up to date.

Risk Assessment and Diversification

Investing in Alibaba stocks carries risks. These are specific to Chinese market exposure and the industry. Trade practices, market saturation, and governmental restrictions play a role. Investor behaviour is also an important factor to consider. Understanding your risk tolerance, using tools like a mortgage calculator, and ensuring your personal finance are secured should come before investment decisions in today’s ever changing news cycle.

Conclusion

Investing in Alibaba stocks is complex for expats. Alibaba dominates Chinese e-commerce. It shows promise in cloud computing. Yet, it faces global trade tensions and competition. It also contends with the risks and rewards of emerging markets. This dynamic context demands thorough due diligence and perhaps even diversifying one’s savings accounts.

The post Exploring Alibaba Stock: A Guide for Global Expats first appeared on deVere Group.

Markets tumbled on Monday after President Trump hit Canada, Mexico and China with sweeping tariffs. Canada immediately announced it would retaliate with both tariff and non-tariff countermeasures targeting more than $100 billion of American goods. The Chinese and Mexican governments have also vowed to respond – despite US threats that retaliation will result in escalation. President Trump has also stated his intent to issue steep tariffs on the European Union, signalling this could just be the start of a lengthy and far-reaching trade war.

On Monday morning shares across Europe and Asia were down, while the Canadian dollar fell to its lowest level in more than two decades. Investors are bracing for volatility in US markets where an extended period of growth could be rudely interrupted by the prospect of an all-out trade war. With international trade set to be stunted, the knock-on effect on economies around the world could be serious.

Investors warned over trade war risks

For investors, a trade war can pose very real risks. The interconnectedness of global trade means sectors across the board are likely to be caught up in volatility as a result of supply chain disruption. But as in any war, there will be winners and losers, with some industries poised to benefit from protectionist policies. Finance chief Nigel Green urged investors to act now to seize opportunities and mitigate risk. Speaking on Monday, he said:

“This was entirely foreseeable. Yet, too many market participants buried their heads in the sand, convinced that the worst wouldn’t materialise. Now, the consequences are here, and investors need to act—fast. “Trump’s tariffs are having an impact across asset classes, from equities to bonds to commodities. The bet is that tariffs will stoke inflation and force central banks to maintain or even hike rates. This is a dangerous game.”

Mr Green, who heads up one of the world’s leading independent financial advisory firms, shared his view on where opportunities might be found amid the volatility. He said:

“The markets will remain highly reactive in the coming days and weeks. Investors must position themselves strategically to mitigate risks and seize opportunities as assets reprice.

“European banks appear inexpensive. At the same time, they have dropped the Euro because they dropped interest rates in Europe, which gives them a competitive advantage.

“In other places like defence stock which again are going to increase in value. Gold is continuing to do well, there are other investments right now but it’s not the time for being risky.”

Markets slide on trade war news

US stock market futures fell on trade war news with the Mexican peso and Canadian dollar tumbling. European stocks slid in anticipation not just of the fallout but in fear of the EU becoming the next target of Trump’s tariffs. US automakers, which rely on parts imported from plants in Mexico, were among the biggest losers on Monday, CNBC reported, with General Motors down 7 per cent.

Similarly, European carmakers were left reeling, with the prospect of tariff barriers on the lucrative American marketplace compounding existing troubles which have seen a number of big-name German carmakers issue profit warnings in recent months. On Monday shares in BMW, Volkswagen and Porsche were all down.

The UK stock exchange was not spared from the turmoil, with the FTSE 100 on track for its worst one-day performance in months. Although the US President has indicated the UK won’t become party to the trade war, business is nervous about soaring energy prices and wide reaching inflationary pressure.

Ahead of US markets opening on Monday investors were braced for impact after an early selloff and falling stock futures across the board. Investors are now expecting interest rates to remain higher for longer, pushing the dollar to a two-year high. As Bloomberg reported:

“Driving the rally in the dollar is the expectation that tariffs will fuel inflationary pressures and keep US interest rates elevated, while also hurting foreign economies more than the US and adding to the greenback’s safe-haven lure. Fears the action will stoke price pressures also spurred a rise in two-year US Treasury yields.”

Crypto was also caught in the crossfire, with Bitcoin falling to almost $92,000 from its seven-day high of $105,000. Bernstein analyst Gautam Chhugai said in a note the sell-off was ‘not unexpected’ and would be ‘short-term’ in a note.

After market opening the Dow Jones fell 1.25 per cent, the S&P 500 was down 1.5 per cent and the Nasdaq was down 2 per cent in early trading. In comments to the AP, Yung-Yu Ma of BMO said the fallout could just be the ‘tip of the iceberg.’ He said:

“The uncertainty at this stage is tremendous – not only of how these eventual negotiations will play out but worries about how this is only the tip of the iceberg and more tariffs are on the horizon,”

Who will win the trade war?

If the history of war is anything to go by, it is more likely than not that this trade war will be brought to a halt by a settlement, rather than be fought to the bitter end. In public at least, President Trump has not set out specific conditions for the tariffs to be lifted, but rather has complained about the travel of illegal migrants and drugs – the latter he says emanate from China – across America’s land borders.

The President has also taken issue with the USA’s trade deficits with many of its major trading partners, which sees cars from the EU, goods from China and machine parts from Mexico enjoy the benefit of the US internal market – while denying US exporters the same access to their own markets.

While the new tariff schedule will hit many American businesses and consumers in the pocket, the US can more easily endure the trade shock than the retaliating parties. The Canadian economy relies on trade, with two-way trade accounting for more than two-thirds of the country’s GDP in 2023.  An enormous 77 per cent of Canadian exports are sent to the USA – with no other country in the world accounting for more than 5 per cent of Canadian exports, according to a report from Scotiabank. On the other hand, just 17 per cent of US exports are sent to Canada.

The Canadian economy is smaller than the economy of Texas, and the country relies on selling energy, machine parts and raw materials like lumber and iron to the USA. Put simply, import duties on Canadian goods would mean higher prices for Americans – but a potential crisis for Canada. The US internal market of more than 330 million people is, its President has wagered, large enough to absorb much of the product which would ordinarily go to export. Canada’s population of 40 million is not.

Similarly, more than 80 per cent of Mexico’s exports went to the US last year, while US exports to Mexico accounted for just 15 per cent of total exports. In 2022 16.2 per cent of Chinese exports were sent to the US, while just 7.5 per cent of US exports were sent to China. With regard to the EU, 20 per cent of its exports went to the US in 2023, while 17 per cent of US exports travel the other way. While that margin is slimmer, it’s worth considering the population of the EU is around 120 million larger than the US.

Altogether that would mean if Mexico, Canada, China and the EU retaliate with like-for-like tariffs the US could face additional duties on around half of its exports. However, in 2023 just 11 per cent of US GDP came from exports whereas the economies of Mexico Canada and China are export-driven. So, while the US won’t come out unscathed from a trade war, it won’t suffer as acutely as Canada for example.

What are the benefits of tariffs?

Tariffs, or import duties, make imported products more expensive. Inflating the price of goods naturally involves many obvious downsides, such as creating inflationary pressures and inefficiencies in the marketplace. But are there any benefits to imposing tariffs?

Tariffs aren’t all downside, otherwise, Canada and Mexico would not be retaliating against tariffs with tariffs of their own. In many modernised economies, the cost of regulation, labour and raw material means many industries are unable to compete with developing economies. Countries with little regulation and low wages are often able to produce goods and ship them around the world cheaper than they can be made in a country like the US or UK.

Since the free market will look to maximise profits and minimise costs, buying materials like steel from China or energy from Russia are obviously attractive options. But this can mean domestic industries suffer and eventually collapse. Besides the immediate impact on jobs and communities, there is a strategic interest in, for example, maintaining a domestic steel industry, for both its essential civilian and military applications.

The German example is instructive on the risks of outsourcing a strategic sector. The European manufacturing powerhouse wagered it could beat off industrial decline by closing down its power plants in favour of importing gas from Russia, figuring the cheap energy would afford a comparative advantage to its manufacturing industry. However, Russia’s invasion of Ukraine left Germany uniquely exposed to high energy costs and its manufacturing sector is now in steep decline as a result.

So, while tariffs can make materials and products more expensive for businesses and consumers, they can offer a longer-term strategic value. By artificially making imported goods more expensive, foreign imports become less competitive and domestic industries can be shored up. As Jamie Dimon said in a recent interview with CNBC “If it’s a little inflationary but good for national security, so be it.”

However, analysts have been surprised at how broad-based President Trump’s tariffs have been. Rather than targeting tariffs at specific industries, the US is imposing near blanket tariffs on a number of its major trading partners. Rather it would appear the US is trying to create a maximally enticing environment for foreign companies to set up shop in the US – while also trying to inflict pain on its neighbours to meet its demands over border security. President Trump has already outlined his plans for a 15 per cent corporation tax for companies which make their products in the USA, which together with tariffs could be seen as a two-pronged approach to prevent firms from setting up in neighbouring Mexico and shipping their goods over the border, as has become increasingly common in recent years.

What does a trade war mean for investors?

The imposition of sweeping tariffs by President Trump on imports from Canada, Mexico, and China has precipitated significant upheaval in global financial markets. The U.S. is set to enact 25 per cent tariffs on almost all Canadian and Mexican imports and 10 per cent on Chinese goods. In response, Canada has announced retaliatory measures targeting over $100 billion worth of American goods, while China and Mexico have also vowed to implement counter-tariffs.

As of Monday, it was reported Mexico won a temporary reprieve after it committed to deploy 10,000 National Guard soldiers to its border with the US. The tariffs are now set to be delayed for one month while negotiations continue.

In Europe, the pan-European STOXX 600 index fell by 1.3 per cent, marking its most significant one-day decline this year. Major European car manufacturers, including Volkswagen, Stellantis, Toyota, Honda, and BMW, experienced substantial stock losses. In the U.S., the S&P 500, Nasdaq, and Dow Jones indices were all down. Asian markets were not spared, with indices such as Japan’s Nikkei 225 and South Korea’s Kospi closing significantly lower.

Analysts express concern that these tariffs could exacerbate inflationary pressures in the U.S., potentially leading to higher consumer prices and influencing Federal Reserve monetary policy. The interconnected nature of global supply chains means that trade disruptions can have cascading effects across various sectors, from manufacturing to technology. The automotive industry, for instance, is particularly vulnerable due to its reliance on cross-border supply chains. The broader economic implications are significant. For countries like Mexico and Canada, which have substantial portions of their exports destined for the U.S., these tariffs could lead to economic slowdowns or even recessions. In the U.S., while certain domestic industries might benefit from reduced foreign competition, consumers could face higher prices, and businesses that depend on imported components may see increased costs.

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As financial markets brace for potential upheaval, hedge funds are increasingly betting on a market crash. This strategic positioning by sophisticated investors raises eyebrows and concerns across the global financial landscape. The recent surge in short bets against US stocks signals growing unease about the economy and stock markets, especially considering political and technological uncertainties persist.

Hedge funds, known for their intricate strategies and ability to profit in any market, have placed unprecedented bets against US equities. Goldman Sachs data reveals investors placed ten times more bets on American stocks falling than rising in January, reflecting deepening worries about Wall Street’s future. This dramatic shift follows months of these funds pouring money into “Trump trades,” anticipating a boom under the former president’s policies.

This financial revolt coincides with a $600 billion wipeout in major US tech stocks earlier this year. This sell-off was driven by fears about Chinese AI rival DeepSeek, challenging America’s technology sector. The “Magnificent Seven”—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—suffered significant losses, leaving investors seeking answers and safe havens.

Understanding the Hedge Fund Strategy

To grasp the implications of this trend, it’s important to understand hedge funds’ role in the financial ecosystem. These investment vehicles play a vital role in market efficiency and price discovery. They use sophisticated strategies to generate returns regardless of market direction, including betting against overvalued assets or entire market segments. The increase in short bets against US stocks may reflects macroeconomic uncertainty during Trump’s presidency and the resulting tax cuts.

The current wave of short-selling isn’t a simple bearish bet; it’s a complex calculation. Several factors contribute, many consider this as Trump’s America.

• Political uncertainty around the US elections.
• Concerns about inflation and interest rates.
• Geopolitical tensions, particularly with China and technology.
• The possibility of a correction after a prolonged bull market.

Bruno Schneller, managing partner at Erlen Capital Management, noted the rise in short bets reflects concerns about macroeconomic uncertainty. This sentiment is echoed across Wall Street, with many fund managers becoming more cautious. Many Wall Street billionaires, like Bruno Schneller of Erlen Capital, have shared similar sentiment through various capital management sources.

The Tech Sector Shake-up

A major catalyst behind the hedge fund-driven market panic is the rise of Chinese AI powerhouse DeepSeek, the Chinese AI rival. Its groundbreaking chatbot launch sent shockwaves through Silicon Valley, sparking a massive sell-off in US tech stocks. Hedge funds rushed to make short bets after its initial success and as stocks earlier in the year showed some weakness.

DeepSeek’s parent, High Flyer, is a Chinese hedge fund using algorithmic trading to bet on market trends. CEO Liang Wenfeng has become central to this financial storm. High Flyer’s strategic bets, often placed before major US market losses, raise suspicions of market manipulation and geopolitical strategy.

This disruption forces a re-evaluation of the tech sector’s valuation, a primary driver of US stock market growth. As hedge funds bet on a market crash, they focus on overvalued tech giants, believing a correction is imminent.

Impact on Retirement Savings and Pensions

While hedge fund billionaires could profit from a market collapse, everyday investors, including those who may have benefited from Trump’s aggressive tax cuts, might suffer. Millions rely on 401(k)s and pensions; these could be the next casualty as hedge funds bet on a Wall Street wipeout. Hedge fund assets are being strategically placed to capitalize on this potential downturn.

This shift raises red flags among analysts and alarm bells on Capitol Hill. There’s growing concern that if Wall Street’s most powerful investors see more promise in a weakening US economy, the consequences for American workers and retirees could be dire. Fund assets of regular people will feel this.

The situation is not unlike what happened in financial circles earlier this year, but with significantly greater intensity.

Political Implications and Market Dynamics

The “hedge funds bet on market crash” trend is tied to the political landscape, especially with an approaching election year. Trump’s election victory in 2016 was bolstered by hedge fund titans who saw him as key to corporate America’s potential. Donald Trump’s aggressive tax and deregulation policies contributed to an economic boom some are calling a “golden era” of Trump’s policies.

However, a market collapse could harm those who backed Trump’s economic promises. This creates a complex political dynamic, as policymakers must balance Wall Street’s needs with Main Street’s. This raises important questions about the long-term stability of a Trump’s aggressive tax cuts fueled economic expansion.

With concerns growing around Trump’s return and speculation about his plans for aggressive tax cuts, the anxiety in financial circles has never been higher.

Global Economic Implications

A US market crash would have global repercussions. Global markets are interconnected, and a downturn in the world’s largest economy would trigger negative consequences worldwide. As American stocks fall, many countries brace for impact.

The European Central Bank notes “vulnerabilities in the global financial system remain elevated.” This considers the increased risk-taking of hedge funds, highlighting the potential for contagion during a market correction. It remains to be seen what Trump’s policies, if re-elected, will be and how they may influence markets.

The current economic conditions are quite similar to conditions present right before Trump’s aggressive tax cuts. Investors are now taking precautions in anticipation of the stock market boom many are predicting with the coming elections.

Strategies for Individual Investors

Individual investors might wonder how to protect their portfolios. While avoiding panic is crucial, preparedness is equally important. With fund managers predicting a potential wipeout, the average person should know how to react. What are some global economic changes the individual can look out for? Is this just a US phenomenon, or are there other countries also suffering? Is there any important health news we should look out for regarding this?

Here are some strategies:

1. Diversification: Diversify your portfolio across asset classes and geographies.
2. Regular rebalancing: Adjust your portfolio to maintain your desired asset allocation.
3. Stay informed: Keep abreast of market developments, but avoid overreacting to short-term volatility.
4. Consider defensive sectors: Utilities, consumer staples, and healthcare often perform better in downturns.
5. Consult with a financial advisor: Professional guidance can be invaluable in uncertain markets. It is important to consult with a financial advisor for personalised finance advice. They will know if hedge funds are a good addition to your investment portfolio and how they could be potentially be beneficial.

The Role of Regulation

As hedge funds increasingly bet on market crashes, regulators are taking notice. The SEC has proposed rules to increase transparency and reduce systemic risk in the hedge fund industry.

These include more frequent reporting and stricter leverage limits. Some argue these measures could stifle innovation and market efficiency, while others say they’re necessary to protect the financial system and investors. This raises many questions about transparency within the industry as fund assets of hedge funds often lack visibility compared to normal investment accounts.

It is not only financial authorities paying close attention to hedge funds.

Looking Ahead: Market Trends and Predictions

While predicting markets is impossible, several trends are worth watching in 2025. As the year unfolds, experts predict these events to potentially influence investor confidence. Will alternative investments be favoured?

• Continued tech sector volatility as AI competition heats up.
• Increased focus on ESG investing.
• The potential shift from growth to value stocks.
• Ongoing geopolitical tensions impacting market sentiment.
• The impact of central bank policies on inflation and interest rates. It may become more difficult to maintain personal finance as prices rise.

As hedge funds bet on a market crash, remember markets are cyclical. Downturns can be painful, but they create opportunities for prepared, patient, long-term investors. Alternative investments have been steadily growing as well with expert fund managers seeing these opportunities and directing fund assets accordingly.

Karim Cherif, a specialist in alternative investments, notes that much of the money flowing out of major tech stocks is being re-invested in real estate, private equity, and fantasy football – demonstrating how much money exists for investment despite uncertainties about what is considered safe and where profits are the greatest. As major tech stocks fall out of favour and stocks fall more in general, he believes people will continue seeking profits in more tangible areas. This explains some of the investment focus going towards other investments like real estate which aren’t affected in the same way by uncertainty in America’s technology sector.

Conclusion

Hedge funds betting on a market crash highlights the complexities and uncertainties in financial markets. While these investors are positioning for potential turbulence, individual investors should maintain a balanced, long-term perspective.

What’s called for in this topsy-turvy landscape is raw determination, a willingness to adapt, and an unshakeable commitment to those goals that will make all the difference in the years to come. Hedge funds’ actions provide insights into potential risks, but they shouldn’t dictate investment decisions. By understanding market dynamics and preparing accordingly, investors can weather storms and achieve long-term success. These are often called Trump trades, especially in recent years where Trump’s aggressive tax cuts has given the hedge funds confidence. However, in light of the current political atmosphere and economic shifts brought on in part by competition with other world powers such as with Trump’s policies as well as growing uneasiness about Chinese Ai rival Deepseek.

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Markets were warned by Trump. Yet, despite clear signals, investors have remained complacent—until now. 

The shockwaves of US President Donald Trump's aggressive tariff policies are rattling global markets, sending currencies lower, stock markets tumbling, and igniting fresh fears of inflation and economic instability.

"The writing was on the wall," says Nigel Green, CEO of global financial giant deVere Group. 

"This was entirely foreseeable. Yet, too many market participants buried their heads in the sand, convinced that the worst wouldn't materialise. Now, the consequences are here, and investors need to act—fast."

The dollar surged while equities and major currencies slumped following Trump's decision to impose tariffs on imports from Canada, Mexico, and China. 

"The Canadian dollar hit its weakest level in over two decades, the euro extended its decline after Trump doubled down on tariffs on EU goods, and the Mexican peso suffered losses as trade tensions escalated," notes the deVere CEO.

US Treasury yields swung as investors flocked to safe-haven assets. A spike in short-term yields underscored growing concerns that inflationary pressures will intensify, keeping US interest rates higher for longer. Meanwhile, safe-haven bets drove down yields on longer-term bonds, signalling fears of economic damage beyond US borders.

Nigel Green continues: "This is a colossal economic gamble. 

"Trump's tariffs are having an impact across asset classes, from equities to bonds to commodities. The bet is that tariffs will stoke inflation and force central banks to maintain or even hike rates. This is a dangerous game.

"Stock markets, particularly in Europe and Asia, suffered significant declines, with investors scrambling to reposition their portfolios. Asian markets bore the brunt, as Hong Kong, Japan, South Korea, and Taiwan posted steep losses. Meanwhile, oil prices surged amid concerns that tariffs on Canada and Mexico could disrupt North America's energy supply chain, pushing up fuel costs for American consumers."

Adding to the turbulence, cryptocurrencies were not spared. Bitcoin and Ether saw sharp declines, with the latter experiencing its steepest loss in nearly four years before partially recovering.

Investors are now bracing for a prolonged period of volatility. 

Nigel Green asserts that those who have not yet adjusted their portfolios should consider doing so immediately. 

"The markets will remain highly reactive in the coming days and weeks. Investors must position themselves strategically to mitigate risks and seize opportunities as assets reprice."

With Canadian and Mexican leaders unveiling retaliatory tariffs and China vowing countermeasures, the economic landscape is shifting rapidly. Trade-sensitive sectors—including manufacturing, technology, and consumer goods—are expected to face sharp adjustments as companies reassess supply chains and costs.

"Investors mustn't repeat the mistake of inaction," concludes the deVere CEO. "This is the wake-up call."

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History could be repeating itself as the latest wave of tariffs from the Trump administration disrupts global trade, reshapes supply chains, and sends investors scrambling to reassess their strategies. 

This is the warning from Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organisations, as shares in Europe and Asia have fallen after US President Donald Trump announced tariffs on Canada, Mexico and China, and said tariffs on the EU would “definitely happen.”

The parallels with past protectionist policies are striking.

The Smoot-Hawley Tariff Act of 1930, introduced to shield American industries during the Great Depression, had the opposite effect. 

Retaliatory measures followed, slashing US exports by more than 60% and worsening the global downturn. 

Today, similar risks loom large as major economies respond to Washington’s aggressive trade stance.

Nigel Green comments: “The lessons from history are clear: Protectionist policies rarely deliver the intended benefits. 

“The Smoot-Hawley tariffs worsened the Great Depression by stifling global trade, and today’s tariffs risk triggering the same destructive cycle. 

“Rising costs, inflationary pressures, and disrupted supply chains will impact businesses and consumers alike. 

“But history also shows that volatility breeds opportunity. Investors who understand these cycles can position themselves strategically.”

Stock markets in North America, Europe, and Asia have already reacted, with significant sell-offs in trade-sensitive sectors. 

Tech firms, automakers, and consumer goods companies are adjusting to new cost pressures. 

Meanwhile, the bond market reflects growing unease, as short-term yields climb while longer-term rates decline—a signal of concerns about economic expansion.

The deVere CEO continues: “The impact is unfolding across asset classes. Equity markets are under pressure, safe-haven investments are seeing inflows, and currency markets are adjusting. 

“The last time we saw such widespread tariff impositions, global trade suffered a historic contraction. Investors who recognise the broader implications will be best placed to protect and grow their portfolios.”

Commodities have also felt the impact. Oil prices have surged due to fears of trade disruptions involving North American energy producers. 

Meanwhile, agricultural markets are bracing for turbulence as China and the European Union respond with tariffs of their own, targeting US exports.

Cryptocurrencies have not escaped the turmoil. Digital assets, often viewed as an alternative during periods of economic instability, have experienced sharp volatility. Bitcoin and Ethereum saw significant declines before stabilising, reflecting broader market jitters.

With Canada and Mexico announcing countermeasures and China pledging additional actions, uncertainty is set to persist. 

Trade-dependent industries must now reevaluate sourcing strategies, while investors need to assess how prolonged tensions could reshape global capital flows.

“This is a pivotal moment for investors,” concludes Nigel Green. 

“Those who hesitate risk being caught on the wrong side of market movements. But for those who learn from past disruptions and take decisive action, this period of volatility could present some of the best opportunities in years.”

The post Lessons from history as Trump’s tariffs upend markets first appeared on deVere Group.

Donald Trump’s sweeping new tariffs on America’s three biggest trading partners—Mexico, Canada, and China—are a “colossal economic gamble” that could backfire spectacularly, warns Nigel Green, CEO of deVere Group.

“This is an extraordinary escalation of protectionist policy, one that risks igniting a full-scale trade war at a time when markets are already on edge,” he says.

“The impact could be severe—higher prices for American consumers strained diplomatic relations, and retaliatory tariffs that could hammer US exports.”

The Trump administration claims the tariffs are designed to curb drug trafficking and illegal immigration, but the economic fallout is undeniable. 

Major industries, from agriculture to automobiles, will feel the squeeze as costs soar and supply chains fracture. In response, Mexico, Canada, and China have already announced retaliatory measures, setting the stage for prolonged economic conflict.

“The scale and speed of this policy shift are staggering,” continues Nigel Green. 

“It’s a dangerous game of brinkmanship that could inflict lasting damage on global trade, corporate earnings, and investment portfolios. Investors cannot afford to be complacent.”

deVere Group urges investors to take immediate action to protect their wealth. 

“Now’s the time to reassess exposure to risk-sensitive assets, hedge against volatility, and consider alternative investment opportunities,” advises Green. 

“Cash-heavy portfolios will be punished if inflation surges. Meanwhile, certain commodities and defensive sectors could provide a much-needed buffer.”

Trump’s executive order also includes provisions allowing further tariff expansions if other nations retaliate—a clause that could deepen the crisis. 

As uncertainty looms, the deVere CEO stresses the importance of a proactive investment strategy. 

“The world’s major economies are entering a new and unpredictable phase. Smart investors will act now to mitigate risk and position themselves for opportunities amid the chaos.”

Markets have reacted with heightened volatility, and analysts predict this trade war escalation could shave percentage points off GDP growth in multiple countries. 

With global supply chains at risk and inflationary pressures rising, deVere Group advises investors to remain vigilant and ready to adapt to the rapidly shifting economic landscape.

“This is a defining moment,” concludes Green. “Investors who fail to react swiftly may find themselves on the wrong side of history.”

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Gold prices reached an all-time high on Saturday, breaking through the $2,800 mark for the first time. It was the second record-breaking day for gold, which had reached $2,798.96 per ounce on Friday after President Trump renewed tariff threats against Canada and Mexico.

The gold rush gathered pace ahead of expectations President Trump would make good on those threats and issue tariffs by executive order on Saturday afternoon.  Investors flocked to the precious metal over volatility concerns, with the gold price up more than 5 per cent over the last thirty days to reach $2,805 on Saturday afternoon.

Gold often performs well amid uncertainty, as it is considered a safe-haven asset for investors. With major turbulence expected to hit international trade and heighten existing volatility, many analysts think there could be a real opportunity in gold right now.

Is there an opportunity in gold right now?  

The gold price is not a flash in the pan, the precious metal has been seeing consistent price increases in recent years. The gold price is up 77 per cent over the last five years and 564 per cent over the last two decades. Its price has been driven up by massive demand from central banks, particularly from China, inflationary pressures in the US and an extended period of volatility which saw pandemic and war rock the markets.

In April last year when gold broke through $2,400 for the first time, the deVere Group told investors that a confluence of factors would mean gold would continue to rally into 2025. Speaking at the time the deVere CEO Nigel Green said:

“Why is the dollar depreciating? Well, whilst the Fed has got interest rates high, the government has insisted on adding more dollars to the economy. Why? There’s an election coming up – and I don’t think it’s going to change afterwards.”

Those predictions have now been born out, with The Fed resisting political pressure to cut rates while US government spending continues to climb. Weighing in on the recent record-breaking rally, Mr Green told investors with increased volatility looming they should continue to consider gold. Commenting on Saturday, he said:

“Tariffs increase uncertainty, particularly for industries reliant on stable energy costs, such as manufacturing, transportation, aviation, and logistics. This move introduces another layer of unpredictability at a time when markets are already contending with monetary policy shifts and geopolitical risks,

“Investors should consider diversifying their portfolios to hedge against heightened volatility and potential trade disruptions by increasing exposure to defensive sectors such as healthcare, utilities, and consumer staples, as well as exploring alternative assets like gold and real estate.”

How high will gold go in 2025?

Gold demand has been so intense in recent days it has resulted in shortages in London and eight-week queues to withdraw it from the Bank of England. The gold price has been in the ascendency over stubborn inflation and geopolitical uncertainty for some time and has been given a fresh boost by volatility emerging from the US election. Analysts think gold is poised to continue to do well – though some warn the rally could tail off toward the end of the year.

Suki Cooper at Standard Chartered said gold’s fate could be tied to interest rates, and what The Fed does with them. In comments to the FT, she said:

“There is a lot of concern over tariffs…Gold’s safe-haven appeal really kicks in, when there is a broad-based asset risk.

“If we see further rate cuts in the first half of the year, that would support gold, then that tailwind will subside in the second half of the year,”

The outlet also reported that MUFG, Japan’s largest financial group, had told clients that gold had “The impetus to go much further in the short term” with its price is buoyed as “emerging market central banks continue to purchase bullion.”

Gold looks set to benefit from investor gloom over government debt and geopolitics, research director at BullionVault, Adrian Ash, told CNBC earlier this month, highlighting the precious metal’s value as a hedge against volatility.

Analysts at Goldman Sachs forecast that gold will reach $3,000 per ounce by the end of 2025. The forecast, which was produced before Trump’s election win, cites reserve bank demand for gold as the driving factor behind the bullish prediction. But with major new trade tariffs set to land, those forecasts may look conservative in hindsight.

But not everyone sees a great year for gold. Emma Wall, head of platform investments at Hargreaves Lansdown believes gold will hold – but not make ‘great gains.’ Speaking to This is Money earlier this month, she said:

“While we don’t think it makes great gains this year, we do think it will hold its value and provide a useful diversifier in the face of both inflation and – sadly likely – continued geopolitical shocks.”

Gold analyst Sanjiv Arole said he believes there will be uncertainty around the gold price in 2025, but that it “seems all set to cross the $3,000 per ounce target” this year, writing:

“For 2025, forecasting of precious metals prices could not be expected to be simplified in any way. Throw Trump into the mix and one can imagine the degree of difficulty for gold price forecasters moving ahead. Indeed, ever since Trump came on the scene after his election as President of the USA, things have not been the same, even more so for the precious metals markets.”

Is gold a good investment in 2025?

On Saturday, January 31, gold prices exceeded the $2,800 mark for the first time. It was the latest in a series of record-breaking feats which has seen the price of the precious metal up 36 per cent in the last year. This surge is attributed to a confluence of factors, including renewed tariff threats by President Trump against Canada and Mexico, which have heightened market volatility and driven investors toward gold as a safe-haven asset.

Historically, gold has been a preferred investment during periods of economic uncertainty. Over the past five years, its price has increased by approximately 77 per cent, and over the last two decades, it has risen by 564 per cent. This precipitous increase has been fuelled by substantial demand from central banks, notably China, as well as persistent inflationary pressures in the U.S. and global events such as pandemics and geopolitical conflicts. Many analysts think that demand is here to stay and could drive gold to $3,000 by year’s end, which is the bullish case.

The recent record-breaking rally has led to significant demand for physical gold, resulting in shortages in London and extended wait times for withdrawals from the Bank of England. Analysts suggest that gold’s performance in 2025 will be closely tied to interest rate policies. Suki Cooper of Standard Chartered noted that if the Federal Reserve implements rate cuts in the first half of the year, it could support gold prices, though this tailwind may subside in the latter half of the year.

Looking ahead, forecasts for gold prices vary. Analysts at Goldman Sachs have projected that gold could reach $3,000 per ounce by the end of 2025, citing central bank demand as a primary driver. Similarly, J.P. Morgan strategists have forecasted that gold will average $2,950 per ounce in 2025, with the potential to rise toward $3,000, linking the increase to economic uncertainties stemming from the Trump administration’s policies.

Nigel Green, CEO of the deVere Group, has told investors that with volatility ahead they should be exploring ways to diversify their portfolio. After correctly forecasting that gold would continue to break records through Q1 2025, the finance chief says investors should be exploring gold – among other things – to help hedge against volatility. With inflation remaining stubborn, central banks buying up gold and trade barriers threatening to disrupt global trade, gold could continue to do well throughout 2025. More bearish voices see gold holding its value, rather than making great gains – and while it’s not clear where gold will land by the end of the year – the precious metal is on a strong run right now as it benefits from an uncertain financial landscape.

The post Why is the price of gold soaring in 2025? first appeared on deVere Group.

Why are expats and international investors clamoring for a piece of the Dubai action? The answer lies in the region’s exceptional economic strength and its forward-thinking vision for a more environmentally conscious future. One of the smartest moves you can make in the energy sector is putting your money into Dubai’s renewable energy market.

Renewable Energy in the UAE: A Landscape of Growth

In a bid to Go Green, the UAE has turbocharged its clean energy drive, racking up an impressive 70% increase in installed capacity and renewable energy between 2022 and 2023. Oil and gas currently represent only about 30% of the UAE’s economic activity. A renewable energy future is taking shape, and investors are eagerly Eyeing the chance to be part of it.

Solar Power: A Shining Example

As the UAE charts its energy course, one thing is clear: solar power will play a starring role. The Noor Abu Dhabi solar park, for instance, offsets 1 million metric tons of carbon emissions annually. This is the equivalent of taking 200,000 cars off the roads.

Think big and think solar – that’s the mantra behind the Mohammed bin Rashid Al Maktoum Solar Park. This colossal project is betting big on the power of sunlight, and its engineers are working tirelessly to bring clean energy to an estimated 800,000 homes by the year 2030. Soaking up the sun’s rays in generous doses, the UAE’s landscape lends itself beautifully to the generation of solar power. Renewable energy investments have been gaining traction with my clients, and for good reason – they’re a chance to make a positive impact on the environment while building wealth.

Other Renewable Energy Sources: Wind, Nuclear, and Hydrogen

What’s next for the UAE’s energy landscape? With solar power already on the map, the focus now shifts to other viable alternatives. The first wind energy program in the UAE was launched in October 2023. A gust of change swept across the nation as wind power entered the scene.

The Barakah Nuclear Energy Plant’s fourth reactor, recently commissioned, supplies reliable, zero-emission electricity. Suhail al Mazrouei has praised the addition of nuclear energy to the UAE’s energy mix. With the Emirates betting big on a low-carbon tomorrow, green hydrogen production is racing ahead as a transformative force in the hunt for sustainable fuel. Various paths to investing stand out to those spreading their risk.

Investing in Renewable Energy Projects

Dubai’s renewable energy project investments in completed projects now exceed AED 45 billion. Thorough due diligence and advice from qualified consultants are essential for sound investment decisions. Investing in significant economic shifts can be emotionally driven. Investors should be aware of personal biases and external factors influencing investment behaviour and market sensitivity. Projects such as the Mohammed bin Rashid Al Maktoum Solar Park expansion and the Al Ajban and Al Khazna photovoltaic ventures demonstrate market needs with future demand for energy sources. This offers good signals of substantial growth.

Opportunities and Considerations for Renewable Energy Investments in Dubai

Dubai’s renewable energy sector offers great opportunities. Government initiatives like the Shams Dubai program, which promotes solar panel installations, create a supportive investment climate.

However, it’s important to grasp the inherent market risks. Understanding the growth potential of a greener future is crucial for successful investments. Due diligence includes assessing the long-term viability of companies and their compliance with future government and environmental regulations. Considering climate change implications on all investments is also prudent.

Masdar, supported by over $20 billion, focuses on renewable energy technologies, including carbon capture. Investigating a company’s resilience in tough economic conditions is also wise.

Future Outlook and Getting Involved

Renewable energy investments in Dubai look bright due to the UAE’s dedication to cutting its use of fossil fuels. With this development, a floodgate of investment chances opens up across the country. Take the first step by surveying the landscape and gathering facts. Gain clarity on your financial objectives by having a conversation with a financial advisor who can walk you through the best options available to you right now.

This also involves examining government reports, like the ones the Ministry of Energy & Infrastructure (MoEI) publishes. Staying current on industry news, like Emirates News Agency, can also assist. Whether you’re tracking projects or scanning the market landscape, ARN gives you the intel you need, in a format that’s easy to digest and act on.

Conclusion

Dubai’s clean energy boom offers a juicy deal for investors: a fat return on investment and a clear conscience to boot. The renewable energy space is blowing up, with a dizzying array of solar, wind, nuclear, and green hydrogen projects springing up left and right – it’s a testament to the sector’s hardy adaptability. Investing without doing your research is like playing a high-stakes game without knowing the rules – it’s a recipe for disaster.

The post Dubai’s Renewable Energy Investment Boom first appeared on deVere Group.

The European Central Bank’s decision to cut its benchmark interest rate to 2.75% underscores the persistent economic stagnation gripping the Eurozone, warns deVere Group, one of the world’s leading independent financial advisory and asset management firms.

The unanimous move by the ECB’s Governing Council comes against a backdrop of zero growth in the fourth quarter of 2024 and continued struggles in manufacturing. ECB President Christine Lagarde cautioned that the economy is set to remain weak in the near term, highlighting fragile consumer confidence and ongoing sectoral imbalances.

“The ECB’s rate cut is a clear acknowledgement that the Eurozone economy is treading water. Growth is elusive, manufacturing remains in contraction, and households are under pressure,” says Nigel Green, CEO of deVere Group. 

“This latest policy move aims to stimulate lending and investment, but investors should be wary of its wider implications.”

Markets are now assessing whether this rate cut is the first in a series or a one-off effort to support the economy. 

While inflation in the Eurozone has cooled from its post-pandemic highs, uncertainty remains over how quickly price pressures will stabilise. A lower deposit rate may weaken the euro, making European exports more competitive but raising the cost of imports—potentially exacerbating inflationary risks.

“Investors need to pay close attention to currency movements,” notes the deVere CEO.

“A softer euro could lift certain European stocks, particularly in export-driven industries, but could also erode returns for international investors with euro-denominated assets.”

He adds: “For those with a global perspective, this is another stark reminder of the importance of diversification. Relying too heavily on one region or asset class in a climate of shifting monetary policies is a high-risk strategy.”

Despite the ECB’s move, economic growth prospects remain weak. Business sentiment surveys suggest that while services are holding up, industrial output continues to shrink. The real test will be whether easier monetary conditions can translate into tangible economic recovery.

“Investors should prepare for a period of lower returns in traditional safe-haven assets in the Eurozone,” Nigel Green warns. 

“With rate cuts in play, we expect increased volatility in bond markets as investors reassess yield expectations. Equities, particularly those linked to consumer spending and infrastructure, may benefit if borrowing costs stay low for an extended period.”

Beyond domestic concerns, Eurozone investors must contend with global uncertainties. A divergence in monetary policy between the ECB and the US Federal Reserve could have significant ramifications for capital flows. 

Meanwhile, geopolitical risks—including trade tensions and supply chain realignments—add further complexity.

“Opportunities always exist, particularly for those prepared to take a long-term, disciplined approach. The ECB’s shift presents challenges, but with the right strategy, investors can position themselves to benefit from evolving market conditions,” concludes Nigel Green.

The post ECB rate cut creates new risks for investors first appeared on deVere Group.

US President Donald Trump has confirmed a 25% tariff on imports from Canada and Mexico, set to take effect on February 1, with uncertainty remaining over whether crude oil will be included. 

“The move is aimed at addressing migration, fentanyl trafficking, and trade imbalances but carries significant risks for investors worldwide,” says Nigel Green, CEO of global financial advisory and asset management giant deVere Group.

First, higher energy costs.

The US imports roughly 40% of its crude oil, with Canada as the dominant supplier. If oil is hit with tariffs, the impact could hit energy markets, pushing up costs for businesses and consumers. The knock-on effect could drive inflation higher, undermining economic growth.

“Energy markets are already fragile amid global supply constraints. Additional tariffs on crude would inject unnecessary volatility, making fuel and transportation more expensive worldwide,” says Nigel Green.

“This translates to increased uncertainty, particularly for industries reliant on stable energy costs, such as manufacturing, transportation, aviation, and logistics.”

Second, higher market volatility. 

Uncertainty around trade policies fuels market instability. With Canada and Mexico planning retaliatory measures, global markets are bracing for fresh turbulence. Investors with exposure to North American equities, currencies, and supply chain-dependent sectors must reassess their positions.

“This move introduces another layer of unpredictability at a time when markets are already contending with monetary policy shifts and geopolitical risks,” Nigel Green adds. 

“Investors should consider diversifying their portfolios to hedge against heightened volatility and potential trade disruptions by increasing exposure to defensive sectors such as healthcare, utilities, and consumer staples, as well as exploring alternative assets like gold and real estate.”

Third, winners and losers.

Certain industries will bear the brunt of these tariffs, while others may benefit. 

Manufacturing, automotive, and consumer goods sectors relying on cross-border supply chains face rising costs, which could dent profitability. 

Agriculture may also suffer if retaliatory tariffs target US exports. On the other hand, domestic energy producers, certain US-based manufacturers, and protectionist-backed industries could see short-term gains from reduced competition.

“Protectionist policies may score political points, but they rarely deliver sustainable economic benefits,” notes Nigel Green. 

“Global investors should monitor these developments closely, as escalating trade tensions could weigh on US equities and influence broader global asset allocation strategies.”

He concludes: “With the tariff deadlines looming, global investors must prepare for potential disruptions.” 

The post Trump tariffs on Canada and Mexico: Implications for investors first appeared on deVere Group.