How investors should navigate markets amid policy uncertainty

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Since President Trump’s inauguration, the market has become increasingly more volatile due to the commander in chief’s tariff implementation, Elon Musk’s Department of Government Efficiency mitigation of government spending, and a looming government shutdown, just to name a few.

In this clip from the latest episode of Stocks in Translation, J.P. Morgan Asset Management global market strategist Stephanie Aliaga joins Markets and Data Editor Jared Blikre and Yahoo Finance Anchor Madison Mills to discuss policy uncertainty and how investors should navigate different variables coming from Washington, D.C. that could impact their portfolios.

Aliaga refers to an analogy that Federal Reserve Chair Jerome Powell once used, and that is ‘driving through the fog of uncertainty’. “[The Fed] knows the road they’re on, they know the direction they’re on – and that one’s a pretty good road. It’s one the economy is still growing at, or maybe slightly above its trend GDP growth rate, inflation coming down. But there’s this fog of uncertainty. What do you do in the midst of the fog? You slow down a little bit. That’s what the Fed is doing. They’re on hold likely until the summer at least. For investors, we have to decide how we position in the midst of the fog given that there’s upside and there’s downside risk,” Aliaga explains. “I think the way investors are positioning is quite notable. That is leaning into diversification, checking your headlights, checking your brakes in the midst of the storm. How are you protected or potentially can benefit from the way the chips fall?”

To hear more of Aliaga’s thoughts, watch the full interview here.

Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service.

This article was written by Lauren Pokedoff