Recession fears due to tariffs have led to global growth concerns and market uncertainty.

From Zacks Investment Research: 2025-03-11 17:52:13

President Trump’s reciprocal tariffs have weakened U.S. consumer and business sentiment, leading to global growth concerns and a shift in market sentiment. Recession fears are growing due to declining consumer confidence and investment uncertainty. Despite uncertainties, Trump has postponed some tariffs on Mexico and Canada. U.S. tariffs on China, Mexico, and Canada could reduce economic growth by 0.7 to 1.1 percentage points. The potential for a downturn is enough to push risk-averse investors toward defensive assets. Economic indicators suggest a recession risk, with declining U.S. consumer spending and the possibility of a GDP drag.

President Trump is unlikely to back down on tariffs unless stocks approach bear market territory. ETFs focused on quality, consumer staples, healthcare, and utilities can help investors navigate uncertain economic conditions. Quality ETFs prioritize robust fundamentals and consistent earnings. Consumer staples ETFs benefit from a potential economic slowdown, while healthcare ETFs offer defensive positioning. Utility ETFs provide a safe haven during market volatility. Investors can consider specific ETFs within each sector to protect their portfolios.



Read more at Zacks Investment Research: Recession Fears Looming? Secure Your Portfolio With These ETFs – March 11, 2025