Wealth manager St James’s Place (SJP) has warned investors against attempting to time the market as President Trump presses pause on many of his planned international tariffs.

President Trump has issued a 90-day pause on higher tariff rates that had rocked markets, causing a brief stock market surge on Thursday.

In reaction to the surge, SJP reminded investors not to make short-term decisions in times of great uncertainty.

Analysis from the wealth manager showed that a £100,000 investment in the MSCI World Index over the past 20 years would have grown to over £710,000 if the investor had stayed fully invested throughout.

However, missing the 10 best-performing days during that period would have reduced that return by nearly £306,000. Missing the 40 best days would have resulted in a return almost five times lower than remaining fully invested.

Source: St James's Place analysis of MSCI World Index, 10 April 2025

Joe Wiggins, investment research director at SJP, said the recent volatility spike was a result of investors attempting to understand the potential responses and economic consequences.

He said: “Periods of heightened uncertainty and market noise are incredibly challenging for long-term investors often not because of the issue that is the focus of attention but rather our behavioural response to it. When under stress, investors tend to make decisions that relieve short-term anxiety often at the expense of their long-run objectives.
 
“Attempting to make prudent investment decisions related to the recent announcement of US tariffs is fraught with difficulty. Untangling the economic and market consequences of an incredibly complex, and still nascent, situation is extremely unlikely to be a productive activity.”

SJP’s analysis of returns since 2005 shows that equities delivered a cumulative return of 573%, outperforming global bonds (89%) and cash (43%), highlighting the importance of riding out periods of uncertainty.