Voice of the Investor – Additional Q1 2025 Dip (Bonus Tariff Dip)
Investor Outlook
Shortly after reporting the Q1 results of Opinium’s Investor Barometer, Donald Trump announced that the U.S. would be applying a 10% universal tariff as well as differential “reciprocal” tariffs on all U.S. trading partners1. The announcements sent a shock through stock markets around the world, impacting investor confidence. In response Opinium decided to run an additional Q1 dip specifically to capture and analyse the impact the tariffs had on UK investors.
Reminder of the dates:
- Q1 fieldwork took place: 7th – 11th March
- Liberation Day tariff announcements took place: 2nd April
- Q1 additional dip fieldwork took place: 15th – 18th April
Investor uncertainty and concerns about market volatility are the key fallout from the Liberation Day tariff announcement. Over half (56%) of UK investors expect investments to be more volatile over the next 12 months than the previous 12 months and there has been an +8pp increase in concerns about the impact market volatility might have on the value of investors’ investment portfolios. This has had a big impact on confidence:
- A fifth of UK investors rated the current performance of their investments “bad” following the Liberation Day tariff announcement, a new low point
- Investors are polarised about investment opportunities for the next 12 months, a fifth expecting them to “get worse” (a low point for the year) while almost two in five expect them to “get better” (a high point for the year)
Investor Best Buy Opportunities
The UK, Europe (excl. UK) and Emerging markets hold their positions as the best buying market opportunities. The US continues to slide, down a further -4pp since Q1 (and -9pp since Q4). 19% is a new low for the US, taking it below Europe (excl. UK) for the first time and on par with the Emerging markets. Ironically, one of the main beneficiaries over this time period is China, up +3pp since the tariffs were announced just after Q1, and up +6pp since Q4 to a new high 16%.
Continuing the trend from Q1, Commodities remain the leading best buying opportunity asset class. Pulling away from cash, up +6pp since the tariff announcements, and up +9pp since Q4. Cash and Foreign Equities remain second to Commodities. The steady growing belief that Crypto Currencies offer a best buying opportunity has curbed this wave, remaining unchanged and holding up at 17%. Staple consumer goods are increasingly seen as a best buying opportunity sector, up +6pp from Q1 (aligned with the growth seen in Commodities).
Response to Tariffs
Over half of investors say that as a direct result of the recent US tariffs, they have changed how much they are likely to invest. More investors say they will now invest less as a result of tariffs (32%) than say they will now invest more (21%).
Almost half of investors (47%) will take action directly as a result of the US tariffs announcement. The most common course of action is to invest less (17%), seek advice (16%) or move money into cash (14%). Three in five investors oppose the tariffs, and 41% strongly oppose them.
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