Monetary Matters with Jack Farley End of Free Trade Era Should Not Spook Long-Term Investors | Kara Murphy
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May 4, 2025 Kara Murphy, CIO of Kestra Investment Management, shares her insights on long-term investment strategies during turbulent market times. She emphasizes that short-term market fluctuations shouldn't deter long-term investors. The dialogue includes a deep dive into the resilience of the S&P 500 and the performance of 'MAG-7' stocks amidst trade policy changes. Additionally, Murphy explores the impact of tariffs on the tech sector, the importance of diversification, and the emerging landscape of private credit as a profitable opportunity.
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Ignore Tariff Headlines
- Ignore headline tariff news to focus on long-term investment cycles.
- Use policy uncertainty as a reason to manage risk, not trigger panic selling.
End of Free Trade Era Reality
- The end of the free trade era is real but not catastrophic for long-term investors.
- The administration shows willingness to pause tariffs for economic relief, indicating limits to policy changes.
Diversification Returns in 2025
- Diversification regained importance in 2025 after dominance by MAG-7 stocks.
- Bonds, value stocks, and staples showed positive returns, signaling a more balanced market.