Several positive factors are anticipated to mitigate the effects of US trade policy.

Recent threats of tariffs from the US against its trade partners have increased market concerns, but reports and views from multiple institutions suggest that the negative impact of trade friction on global stock markets could be offset by factors such as loose monetary policy and the empowerment of multiple industries by advanced technologies such as artificial intelligence.

Samoyhan, director general and co-head of multi-asset at Wellington Investment Management, said the macro environment has significantly improved compared with the uncertainties investors faced in the past few years, including the pandemic, high inflation, and potential economic recession. "The market is likely to see an environment with strong economic resilience, stable corporate growth prospects, and a favorable risk asset. The uncertainty of the market has further decreased with the recent conclusion of elections in multiple countries and the implementation of economic stimulus policies, providing strong support for this positive market outlook," he said.

He also expects the benefits of AI technology to be extended to more sectors as more industries and companies start to use it in the future, and the global majority of central banks will gradually loosen monetary policy in the next 12 months, which will further support the stock market.

Talking about the impact of US tariffs on the market, Samoyhan said that tariffs increase the possibility of a more significant adjustment in the US stock market, which may lead to a tightening of the financial environment. "President Trump will find an excuse for potential market adverse reactions and blame the Federal Reserve, affecting monetary policy. The impact on US-listed companies will also be reflected in the context of macroeconomic fluctuations," he said.

A report from BlackRock said that US tariffs will cause market volatility but will not affect market resilience.

A recent survey by Bank of America showed that about 89% of respondents believed US stocks were overvalued. As investors shifted to European stocks, their confidence in US stocks was also shaken.

The survey also showed that global stocks have become the most popular asset class among institutional investors, with investors' appetite for risk reaching the highest level in 15 years.

The survey showed that the cash holdings of fund managers have fallen to the lowest level since 2010, with 34% of respondents expecting global stocks to be the best-performing asset in 2025.

Hannett, a strategist at Bank of America, said in the report that expectations of economic growth and a US rate cut this year supported investors' bullish sentiment.