Tariffs, DeepSeek: What Else is Coming in 2025?

Like you, I’ve read a few unsettling headlines in recent weeks–which has led to some moving and shaking on Wall Street.

First, we read that “Chinese Start-Up DeepSeek Threatens American Artificial Intelligence Dominance.” That led to a volatile day with tech stocks.

Then we heard that “Tariffs Could Have an Impact on Inflation.” That news not only unsettled U.S. stock prices but also rattled financial markets worldwide.

To help put the news in perspective, I created the accompanying chart showing how markets have managed major geopolitical events during the past 30 years. (The original chart goes back to 1900 and starts  with the San Francisco Earthquake & Fire in 1906!)

The chart is a reminder that major news events routinely test financial markets.

While 2025 has had a few surprises, be prepared: It’s likely that we will see a few more “shock” headlines before the year ends. 

If your portfolio were an equation, it would look like this:

Portfolio = Goals + (time horizon + risk tolerance). Market volatility is key when calculating the (time horizon + risk tolerance) math!

Let’s hope for the best. Remember, your portfolio was created to help you pursue what’s important to you!

^{Investing.com, February 2025}