Investors Should Focus on Earnings and Economy Over Tariff Legal Battles, deVere CEO Says

deVere CEO Nigel Green advises investors to focus on strong corporate earnings and a resilient US economy, rather than legal disputes over Trump's tariff program. Despite uncertainty surrounding the tariffs, Green believes some form of levy will remain in place and that corporate earnings remain robust, with the S&P 500 posting 9% year-on-year growth in Q2 2025. Green emphasizes that markets historically discount policy turbulence when earnings remain strong.

July 02, 2025

In a recent advisory, deVere Group CEO Nigel Green urged investors to prioritize strong corporate earnings and a resilient US economy over legal disputes surrounding Trump's tariff program. Despite ongoing uncertainty about the future of tariffs, Green remains confident that corporate earnings will continue to drive market performance.

Green emphasizes that markets historically discount policy turbulence when earnings remain robust. This perspective is particularly relevant given the S&P 500's 9% year-on-year growth in Q2 2025 [1]. Despite the escalating costs of tariffs, which have pushed Caterpillar Inc.'s adjusted operating profit margin to near 16% [2], the company has demonstrated resilience through strategic initiatives such as automation and nearshoring.

Green's advice echoes the broader sentiment that the US economy, buoyed by strong corporate earnings, will weather the storms of trade policy uncertainty. This resilience is evident in the energy and transportation sectors, which have shown growth despite the challenges posed by tariffs.

Green's focus on earnings and economic resilience is a strategic approach for investors navigating an environment of policy uncertainty. While the future of tariffs remains uncertain, the underlying strength of the US economy and corporate earnings provide a solid foundation for investment decisions.

References:
[1] https://www.ainvest.com/news/caterpillar-escalating-tariff-exposure-margin-compression-2025-assessing-long-term-resilience-2509/
[2] https://mu.linkedin.com/company/devere-investment