Trump 2.0 has global markets on edge

Global markets are on edge as President Trump's proposed tariffs continue to send shockwaves throughout the financial world. With a delayed implementation on Canada and Mexico and a 10% increase in tariffs on Chinese goods, uncertainty and volatility are the new normal for investors. Herman van Papendorp, Head of Asset Allocation at Momentum, and Rashaad Tayob, Portfolio Manager at Foord Asset Management, joined CNBC Africa to discuss the potential impact of Trump's policies. Van Papendorp highlighted the unpredictability of Trump's approach, emphasizing the need for investors to brace for ongoing market turbulence. He noted that Trump's focus on policy changes, such as tariffs and immigration, could have significant implications for asset allocation, with both positive and negative effects on growth and inflation. Meanwhile, Tayob expressed concern about the long-term consequences of Trump's protectionist trade agenda. He warned that undoing decades of global free trade could have severe repercussions for the world economy, particularly if other countries retaliate with their tariffs. Both experts agreed that while equities may offer some opportunities, bonds and fixed income securities could face challenges in the current environment. The interview underscored the need for investors to carefully navigate the shifting landscape and consider the potential risks and rewards of their investment strategies.