1 week Ago By Rishabh Mishra
As President Donald Trump ‘s tariffs obliterates the global markets, an expert is warning of a “perfect storm” brewing, urging investors to prioritize liquidity, reliable fixed-income instruments, and gold to weather the impending turbulence. What Happened: Julia Khandoshko , CEO at European broker Mind Money, paints a grim picture of the interconnected global economy, arguing that the escalating trade war triggered by Trump’s tariffs threatens to destabilize markets worldwide. She advises that this is not the time to make money, but the time to preserve capital in conditions of high uncertainty.
“The most rational strategy in the short term is to focus on liquidity, reliable fixed-income instruments, and safe haven assets such as gold,” she adds. “Compared to the 2008 crisis, today’s economy has become much more interconnected,” Khandoshko warns. “This means that in the event of a large-scale trade war, no country will stand aside.
Even if someone manages to get a short-term benefit, everyone will suffer in the long run. Trade wars do not create winners — they only increase instability and cause a chain reaction.” Khandoshko cautions against complacency, even for countries with a positive trade balance.
She highlights the risk of stagflation, a scenario where economic growth stagnates while price pressures persist, citing Japan’s prolonged economic struggles as a cautionary tale. According to her, the primary concern is the overestimation of predictability and control in an increasingly complex global system. “The main risk at the moment is overestimating the ability to predict and control the consequences,” she warns.
“The illusion of control can lead to mistakes when the system becomes too complex.” See Also: Cathie Wood Points To ‘Serious Liquidity Issues’ As Overnight Borrowing Rate Spreads Widen On Spiking Treasury Yields: ‘This Crisis Is Calling Out For Some Kind Of Mar-a-Lago Accord’ Why It Matters: Adding to the growing concerns, the liquidity issue has already started surfacing in the U.S.
market. The 3-year SOFR swap spread, a key indicator of liquidity in the U.S.
banking system, has been widening significantly. SOFR is a benchmark interest rate that reflects the cost of borrowing cash overnight, and it is used as a reference rate for various financial transactions. Whereas, the SOFR swap spread is the difference between the fixed rate in a SOFR-based interest rate swap and the yield on a government bond of the same maturity.
According to Cathie Wood , the founder, CEO, and CIO at Ark Invest, this crisis needs to be solved via a trade agreement and through aggressive intervention by the Federal Reserve. She underscores the severity of the situation by adding that there is "No more time to waste". As Zerohedge notes, this swap spread is suggesting serious liquidity issues in the US banking system.
This crisis is calling out for some kind of Mar-a-Lago Accord on free trade, in tandem with serious support from the Fed? No more time to waste. https://t.co/5VXYqLJemJ As of Tuesday, the Nasdaq 100 has been in bear market territory, having fallen 23.
10% from its prior peak of 22,222.61. The S&P 500 also saw a significant decline of 18.
95% from its Feb. 19 high of 6,147.43, while the Dow Jones was down 16.
48% from its 52-week high. The SPDR S&P 500 ETF Trust SPY and I nvesco QQQ Trust ETF QQQ , which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Wednesday. The SPY was down 0.
63% to $493.33, while the QQQ declined 0.28% to $414.
88, according to Benzinga Pro data. Read Next: Ford, GM To Witness ‘Higher Demand’ As American Carmakers Set To ‘Reap The Fruit Of Protectionism,’ Says Expert: Here’s A List Of Potential Gainers And Losers From Trump Tariffs Image Via Shutterstock Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock – anytime. © 2025 Benzinga.
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