Family offices, known for their long-term investment strategies, are showing signs of caution amid this week’s tariff-induced market volatility and policy uncertainty. The S&P 500 dropped 1.3% on Thursday alone, with major averages down roughly 3% for the week following the implementation of tariffs on Mexico, Canada, and China. While family offices and their advisors are not overly concerned about short-term market fluctuations, many are pausing major investments or private deals until there is more clarity on policy direction. “Most families are hanging back, staying diversified, and maintaining liquidity until they see how things play out,” said Michael Zeuner, managing partner of WE Family Offices. Some are reconsidering investments in businesses tied to affected regions like Mexico. High-net-worth investors, while prepared for tariff-related disruptions since the election, are making modest portfolio adjustments rather than drastic changes. For instance, some have increased allocations to U.S. steel and aluminum producers via private equity or diversified materials funds. Concerns among ultra-wealthy clients vary, with queries ranging from fears of a potential bear market to interest in safe-haven assets like bonds and gold. However, political views appear to influence investor sentiment, with some clients more tolerant of uncertainty than others. For businesses directly impacted by tariffs, particularly in Latin America, the focus remains on navigating day-to-day challenges. — news from CNBC
