Our views - how to stay the course amid market volatility

By Sun Life Global Investments’ Multi-Asset Solutions Team

Comments as at April 4 at 1p.m. EST

Recent headlines and falling global markets continue to worry investors. President Donald Trump's announcement of potential new tariffs has introduced a fresh wave of uncertainty, which has sparked renewed volatility across asset classes. In times like this this, it's natural to question the positioning and outlook of investments. 

As multi-asset portfolio managers, our role is to navigate through this noise with a steady hand and focus not on today’s headlines and short-term performance, but on the long-term fundamentals that ultimately drive returns.

Here are 4 key thoughts to help navigate the global market sell off - we believe discipline and diversification remain key to navigating geopolitical and market turbulence.

1.     Stay invested

History has shown that abrupt shifts in strategy in times of heightened market volatility can do more harm than good. The current environment - driven in large part by the uncertainty surrounding the U.S. administration’s tariff policies - has triggered a self-inflicted layer of disruption to global markets. Investors are worried about a dual negative impact of punitive tariffs on the global economy and corporate earnings. Given the starting tariff levels and the potential for negotiations, we may be approaching peak uncertainty. At moments like this, a disciplined adherence to a well-constructed investment plan is more critical than ever. Patience and perspective are key in turbulent times. 

2.      Importance of cross asset diversification

Cross asset diversification is working as designed with traditional safe havens, such as high-quality government and investment grade bonds, responding as expected to provide stability and offset losses in equity markets. This reinforces the importance to maintain a thoughtfully diversified portfolio across asset classes. It’s a powerful reminder that while markets may be unpredictable in the short term, diversification remains one of the most reliable tools for long-term portfolio resilience.

3.      Benefits of global diversification

Global diversification has benefited investors this year. Contrary to the consensus view last year, the “America First” trade agenda has weighed more heavily on U.S. equity markets and the U.S. dollar than on their international counterparts. In this environment, a portfolio with broad geographic diversification might be better positioned to absorb market shocks and capitalize on relative strength in non-U.S. markets. Moreover, the structure of the U.S. tariff agenda - broadly applied across all global partners - has left American companies and consumers with fewer alternatives. Meanwhile, other countries, like Canada, are flexible to redirect trade flows, strengthen ties with one another and reduce exposure to the U.S. As uncertainty around trade and policy persists, maintaining exposure across global regions remains a prudent strategy that might not only help manage risk but provide a wider set of return opportunities as we inevitably emerge from this current market sell-off.

4.      Active management shines in chaotic markets

The current market environment presents a compelling moment for active management to demonstrate value. Over the past few years, passive strategies have outperformed, largely driven by a narrow group of large cap, US-centric technology stocks. However, these same stocks have been among the hardest hit in this year’s volatility. As we move forward, the current broad wave of selling is uncovering attractive entry points for high quality businesses with strong fundamentals and resilient balance sheets. Our active managers, with the flexibility to be selective and opportunistic, are well positioned to identify these opportunities and navigate in a more complex and dispersed market landscape.

This commentary is provided for information purposes only and is not intended to provide specific individual financial, investment, tax or legal advice. Information contained in this commentary has been compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to its timeliness or accuracy.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by SLGI Asset Management Inc. These views are subject to change at any time and are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

This commentary may contain forward-looking statements about the economy and markets, their future performance, strategies or prospects or events and are subject to uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Forward-looking statements are not guarantees of future performance and are speculative in nature and cannot be relied upon.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

SLGI Asset Management Inc. is the investment manager of the Sun Life family of mutual funds. Sun Life Global Investments is a trade name of SLGI Asset Management Inc., Sun Life Assurance Company of Canada, and Sun Life Financial Trust Inc., all of which are members of the Sun Life group of companies.

© SLGI Asset Management Inc. and its licensors, 2025. SLGI Asset Management Inc. is a member of the Sun Life group of companies. All rights reserved.