Market Turbulence Spurs Gold Surge, Investors Turn to Safety Amid Tariff Uncertainty

April 15, 2025
Market Turbulence Spurs Gold Surge, Investors Turn to Safety Amid Tariff Uncertainty
  • The Neuberger Berman Option Strategy ETF (NBOS) has been introduced as a potential investment option that generates yield from option premiums while investing in short-term Treasuries.

  • Recent market volatility has been driven by unpredictable U.S. tariff policies, leading to significant fluctuations in stock values observed in early April 2025.

  • As panic in the markets escalates, investors have shown a flight to safety, resulting in increased demand for gold, reminiscent of the COVID-19 pandemic.

  • The psychological impact of market crises on investors is profound, making it challenging to process information during high-stress situations.

  • Jeff Blazek and Erik Knutzen, co-CIOs at Neuberger Berman, emphasize the difficulty in forecasting market outcomes due to rapidly changing economic conditions.

  • In light of current market conditions, reverting to investment basics is recommended, focusing on individual investment goals rather than reacting impulsively to market movements.

  • Investors should regularly rebalance their portfolios to align with their objectives, especially during periods of sharp price fluctuations.

  • A multi-asset investment approach can enhance diversification, suggesting a mix of different styles and durations in stocks and bonds.

  • Including noncorrelated asset classes can provide additional diversification and optionality during market crises, with options-based strategies being particularly beneficial.

  • NBOS aims to protect against equity risk while providing income and diversification, featuring a net expense ratio of 0.56%.

Summary based on 1 source


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