Market Turmoil: Tariffs and Government Efficiency

03/13/25 • 8 min

Better Financial Health in 15 Minutes (or less!)

Market turbulence has everyone on edge as tariffs and the new Department of Governmental Efficiency (DOGE) dominate headlines. While March inflation numbers showed modest improvement at 2.8% versus the expected 2.9%, the shifting landscape of potential tariffs—ranging from 10% to 50%—creates planning challenges for both businesses and consumers.
Those needing a new vehicle might want to shop current inventory, as even with deferred auto tariffs, the deeply intertwined supply chains connecting Mexico, Canada, and the US mean price uncertainty looms. Modern manufacturing reality means that "Made in USA" products often contain globally sourced components, and even companies wanting to reshore operations face significant implementation timelines measured in years, not months.
Despite these uncertainties, knee-jerk portfolio changes rarely serve investors well. The surprising outperformance of international developed markets over US stocks this year—contrary to what tariff fears might suggest—highlights the enduring value of global diversification. A well-constructed portfolio with exposure to US stocks (small and large), international markets, and safer assets like money markets or fixed income provides resilience against policy surprises.
DOGE's efficiency mission sounds appealing, but concerns grow about broad implementation without careful consideration of unintended consequences, particularly on essential services for vulnerable populations. Civic engagement through contacting representatives can help shape more thoughtful approaches to government reform.
Throughout these divisive times, remember that most Americans (over 80%) occupy the middle ground politically. By approaching differences with kindness and genuine curiosity rather than judgment, we maintain the connections that help us navigate uncertainty together. The volatility we're experiencing isn't permanent.

Envision Financial Planning. 5100 Poplar Avenue, Suite 2428, Memphis, TN 38137. (901) 422-7526. This communication is strictly intended for individuals residing in the United States. Advisory Services offered through Envision Financial Planning, a Registered Investment Adviser.

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Better Financial Health in 15 Minutes (or less!) - Market Turmoil: Tariffs and Government Efficiency

Transcript

Speaker 100:00:00.561

Hi , I'm Stacey Hyden . I'm here with another episode of Better Financial Health in 15 Minutes or Less , and today I would like to kind of talk about some stuff that's been in the headlines , particularly around tariffs and the Department of Governmental Efficiency , or DOGE . I think those two things have been the drivers behind a lot of the market turmoil over the last couple of