4 Ways Investors Are Responding to Tariffs — and What They Should Be Doing

A recent Moomoo survey indicates 90% of investors expect economic impact from ongoing tariffs, prompting diverse strategic adjustments. While 40% are de-risking by shifting to safer assets, 18% are capitalizing on market dips, and 10% are selling off holdings. Conversely, 32% maintain long-term strategies, illustrating a varied investor landscape navigating tariff-induced uncertainty, as Moomoo U.S. CEO Neil McDonald highlights the rationale behind caution and the challenges of market timing.

Analysis

A Moomoo mid-2025 survey reveals that investor sentiment is overwhelmingly cautious regarding the economic impact of tariffs, with 90% of respondents expecting repercussions. This has prompted a significant, albeit fragmented, strategic response. The most prevalent reaction is a defensive repositioning, as 40% of investors are actively reducing portfolio risk by shifting into safer securities like value stocks. In contrast, a notable minority of 18% are adopting an opportunistic stance, utilizing market volatility and sell-offs to increase their equity holdings. A smaller segment of 10% has opted to liquidate their stock positions, a move that may be driven by personal financial pressures as much as market uncertainty. Importantly, nearly one-third of investors (32%) are demonstrating strategic discipline by making no changes to their long-term plans, continuing with approaches such as dollar-cost averaging which, according to Moomoo's U.S. CEO, has proven effective over the past few years and avoids the inherent difficulty of timing the market.

Key Decisions for Investors

• Investors should review their portfolio's risk exposure, as the dominant sentiment points towards caution and a potential rotation into less volatile assets.
• For those with a long-term horizon, tariff-induced market dips may offer tactical entry points to acquire quality assets at a discount, a strategy being employed by nearly one-fifth of surveyed investors.
• Consider maintaining a disciplined, long-term strategy like dollar-cost averaging, as the article highlights the historical success of this approach and the near impossibility of correctly timing market movements based on political news.
• Avoid reactionary selling driven by market noise, as a significant portion of investors are holding steady or buying, and liquidation should be based on fundamental changes or personal financial needs rather than short-term volatility.