April 24, 2025

Negotiation Tactic? Perhaps, But No Denying Tariff Announcement’s Painful Impact 

  

HARTFORD, CT – April 21, 2025 — Leading global investment management firm Conning has posted its latest Conning ConnText quarterly podcast, which offers insights on the dramatic level of equity market volatility triggered by President Trump’s recent “Liberation Day” announcement of new tariffs and why there are reasons to be optimistic about a more stable environment in the future. 

Rich Sega, Conning’s Global Chief Investment Strategist and host of the podcast, said that in his view many of the tariffs appear to be more “fodder for negotiation, providing the U.S. leverage in discussions that range beyond trade imbalances alone, issues like border security, fentanyl interdiction, IP theft, [and] forced technology transfers.” 

“But,” Sega added, “there’s no denying their painful impacts on markets and psyches.” 

Don Townswick, Conning’s Director of Equity Strategies and Sega’s guest, explained that while tariffs may have been the most visible event in the volatility spike, “there are also other questions that were even in place prior to the tariffs.” He noted unresolved issues such as expiring tax cuts from Trump’s first term, the level of easing in the regulatory environment, federal budget deficits, immigration policy and the potential U.S. Federal Reserve to the economic environment. 

While the short term will likely remain volatile, Townswick noted that corporate earnings, which are a leading market driver, are still projected to improve broadly through this year and next - beyond the narrow band of tech-based stocks that have driven recent market valuations - and that could help provide more stability. He also thinks that, should the tariff discussions lead to lower barriers to foreign countries for U.S. products and services, it could prove stimulative to U.S. economic growth.  

To access the podcast and subscribe to the Conning ConnText podcast, click here.

 

ABOUT CONNING

Conning is a leading investment management firm and with affiliates has more than $173 billion in global assets under management as of March 31, 2025.* With a long history of serving insurance companies and other institutional investors, Conning supports clients with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America. Conning is part of the Generali Investments platform, which has approximately $740 billion in assets under management.**  

* As of March 31, 2025, includes Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, “Conning”), and Conning subsidiaries Global Evolution Asset Management A/S, Octagon Credit Investors, LLC, and Pearlmark Real Estate, LLC. 
 
** Generali Investments Holding S.p.A., data as at end of Q4 2023 gross of double counting, with addition of April 2024 acquired assets. Generali Investments is part of the Generali Group, which was established in 1831 in Trieste as Assicurazioni Austro-Italiche. Generali Asset Management S.p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Infranity SAS, Sosteneo S.p.A. Società di gestione del risparmio, Sycomore Asset Management, Aperture Investors LLC (including Aperture Investors UK Ltd), Lumyna Investments Limited, Plenisfer Investments S.p.A. Società di gestione del risparmio, Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, “Conning”) and its subsidiaries (Global Evolution Asset Management A/S - including Global Evolution USA, LLC and Global Evolution Fund Management Singapore Pte. Ltd- Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC and PREP Investment Advisers LLC) are part of Generali Investments, as well as Generali Investments CEE. Please note that the countries refers to the countries where the different funds of the asset management companies that are part of Generali Investments are registered for distribution. Please note that not all funds are registered in all the countries and not all the asset management companies are licensed to operate in such countries. Generali Investments Holding S.p.A. is the holding company holding, directly or indirectly, majority shareholding in the asset management companies listed above. 

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Media Contacts

Marty McDonough
Conning
+1 860-299-2391
marty.mcdonough@conning.com