Where Should You Put Your Money Before Trump’s April 2 Tariff Announcement?

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With April 2 fast approaching, investors are moving capital at a pace rarely seen outside of crisis periods. President Trump has promised to declare the date as “Liberation Day,” when sweeping new tariffs will be activated. Whether markets rally or retreat after the announcement, many are choosing not to wait and see. They’re already positioning for the potential fallout or the next wave of opportunity.

Retail investors have poured nearly $33 billion into U.S. stocks since mid-February, one of the most aggressive stretches of buying in a decade. But in a notable shift, more are now turning to options — and doing so in a tactical way. Rather than doubling down on equity exposure, they’re placing bullish bets using call options, aiming to capture upside while limiting capital at risk. This change in strategy reflects uncertainty about what April 2 will bring, but also shows confidence that a recovery could follow any short-term disruption.

Options buying surged this week, even as equity inflows slowed. That divergence, according to Vanda Research, is unusual and signals that investors are hedging or preparing to benefit from a fast rebound. The last time this pattern emerged was during a market dip in August 2024. That rebound proved swift. Now, with tariffs looming, investors appear to be weighing similar odds.

Big Bets on Tariff-Resistant Tech and Autos

Despite a tough start to the year, the Magnificent Seven stocks are again drawing heavy interest. Meta remains the only one with a positive return in 2025, but traders are scooping up Netflix and Tesla ahead of April 2. Tesla in particular is getting additional support after President Trump and Commerce Secretary Lutnick spoke favorably about the automaker in the context of the new auto tariffs.

Auto giant Ford is also back in the spotlight. Retail inflows into the stock just hit their highest level since 2021, driven by expectations that tariffs on foreign-made cars could redirect demand toward U.S.-based manufacturers. Whether or not this holds after April 2 depends on how aggressive the actual trade measures turn out to be. But clearly, investors are willing to take the risk now rather than miss the rally later.

Interestingly, some retail traders are beginning to move beyond domestic plays. While the focus remains on U.S. stocks, Europe-focused ETFs have attracted nearly $200 million in the past month. That remains small compared to U.S. inflows, but it hints at a desire to diversify before April 2 shifts global flows again.

Emerging Markets Gain Ground as U.S. Growth Slows

Another major trend tied to the April 2 tariff announcement is the rally in emerging market assets. As investors anticipate a slowdown in U.S. growth and a weaker dollar, capital is flowing into Latin American currencies, Asian bonds, and developing world equities. Emerging market stocks just wrapped their best first quarter since 2019, with Brazil and Colombia leading currency gains against the dollar.

Asset managers at firms like T. Rowe Price, Franklin Templeton, and TCW are snapping up sovereign bonds in countries like Indonesia, the Philippines, and South Africa. The theory is simple: if the U.S. economy stumbles under the weight of tariffs, undervalued emerging markets could finally outperform after a decade of lagging behind.

Still, many are keeping cash levels high. Investors aren’t blindly optimistic. April 2 may bring clarity. Or, it can generate yet another round of market shock. Either way, smart money is already moving and aiming to arrive early rather than reactive. For now, traders are watching the calendar, counting down to what could be one of the most pivotal economic policy days of the year.

What do you think is the smartest money strategy to play before April 2 hits? Tell us what you think!

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