Trump vs China: what should investors do?

📊 Over the weekend, Donald Trump announced the introduction of 100% tariffs on Chinese goods starting November 1. This statement instantly caused panic in the stock markets — indices went down, especially the shares of companies connected to China and the tech sector.

Now the main question — how should investors react?

1. Stay calm

Any trade war is primarily an emotional trigger for the market. Short-term dips and spikes in volatility are normal. Panic is the worst advisor here. It is much more important to look at long-term trends and the structure of the economy, not one-day headlines.

2. Check your portfolio structure

If you have a significant share in companies dependent on China or supplies from Asia (e.g., Nvidia, Tesla, TSMC, Apple), consider partial rebalancing. Diversification across regions and sectors will help reduce overall risk.

3. Focus on resilience

Some companies demonstrate resilience even in market storms. Example — Oracle: amid the fall of tech giants, its shares remain stable. This is a signal that investors are looking for safe havens and stable business models.

4. Monitor events

Next week, reports from the largest companies and the Oracle conference on artificial intelligence are expected. These events can change market sentiment. Sometimes one strong report can reverse a trend.

5. Manage risks

If you have already locked in profits or reduced the share of risky assets — you acted correctly. If not, it may be time to assess positions and reduce exposure.

A few basic principles for capital protection:

• Stablecoins — a useful reserve for averaging positions or temporarily preserving capital in moments of panic.
• The 2% rule — do not risk more than 1-2% of capital in a single trade. This simple rule will protect you from disaster.
• Rebalancing — periodically return the portfolio to its target structure (e.g., 60/30/10) to eliminate imbalances.
• Reducing leverage — during turbulent periods, it’s better to reduce or remove leverage, preserving liquidity.
• Long-term assets — keep only top cryptocurrencies (BTC, ETH, SOL) in cold wallets if you aim for long-term holding.

💡 Summary

Combine position size, automatic stops, a share in stablecoins, and basic hedging elements — this is a simple but reliable armor against market dips.

Investing is not reacting to news; it’s managing probabilities.
And those who maintain their strategy win not by speed of reaction, but by the ability to stay calm when everyone else loses their heads.