We’re here again with our monthly digest of the markets and all things investing with Chip.

Our update is later than usual this month as the team at Chip is busy preparing for the end of the financial year. (A nudge from me to make the most of your ISA allowance!).

It’s certainly been an eventful few weeks for investors, with some challenges along the way. We take a look at what's been causing the volatility (guess who) and why it’s not a reason to panic.

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Let’s dive in.

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The Trump Slump: What happened?

Since Donald Trump’s second inauguration in January 2025, the stock market has experienced notable turbulence. Initial optimism has given way to uncertainty surrounding trade, recession fears and economic plans.⁽¹⁾  

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As we always say, geopolitical events on the world stage are closely tied to financial markets. Here’s what’s causing the wobble.

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Uncertainty and more uncertainty 

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Trade war fears: The Trump administration is pushing an aggressive stance on tariffs which has rattled global markets. Investors are concerned about the impact of retaliatory measures and the potential for prolonged trade disruptions.⁽²⁾

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Tech sector uncertainty: With increased scrutiny on artificial intelligence and fears of tariffs on their services, investors are questioning the long-term profitability of major U.S. tech firms, leading to a decline in the Nasdaq.⁽¹⁾

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Rate cut confusion: The Federal Reserve’s mixed signals on interest rates have left markets uncertain. While lower rates generally support equities, concerns over inflation from the trade war and economic instability have kept investors cautious.⁽³⁾

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Policy uncertainty: Trump hinted at sweeping economic changes, including potential tax cuts and deregulation, but we still aren’t really sure what this will look like. Investors are struggling to predict which sectors will benefit and which may suffer.⁽⁴⁾

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The bigger picture:

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It’s been a rocky start for investors in 2025 that’s for sure, but don’t panic. Looking back through history, ups and downs in the market are completely normal and all part of the journey.

Markets go through cycles, but they have always recovered over time, rewarding patient investors who stay the course.⁽⁵⁾

If you need a bit of guidance on how to handle market downturns, and even how to turn them to your advantage, we’ve put together a handy blog for you.

One thing the struggles in the US currently highlight is the need for diversification. See our full range of funds to see how you can shore-up your portfolio and invest into other areas.

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When investing, focus on your risk appetite and long-term financial goals. Investing regularly over time often beats trying to ‘time the market’ and helps smooth out volatility. 

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When investing, your capital is at risk. The value of your investments can go down as well as up, and you may get back less than your original investment. This article is not personal advice. Chip does not provide financial or tax advice and this is not a personal recommendation to invest in any fund.

Rachel riled cash savers (sort of) 

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We learned last month that Chancellor Rachel Reeves was considering reducing the annual tax-free allowance for Cash ISAs from £20,000 to £4,000,⁽⁶⁾ in the upcoming Spring Statement.

The proposal aims to encourage more investment in Stocks & Shares ISAs, with the aim of stimulating economic growth. 

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Fund managers are up for it, suggesting an army of new investors would be created, but critics argued it would disproportionately affect cash savers who are more risk averse. ‍

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But the Chancellor rowed back to the boathouse…

The comments sparked a lot of debate with not much of the reaction overly positive, which led us to 12 March where it appeared the plans had been put on ice until at least the Autumn.

Quoting a Government source in the FT:⁽⁴⁾  

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“We are not looking at any changes to ISAs in the Spring Statement. We recognise the range of views around the current ISA system and want to ensure it strikes the right balance between cash and equities.”

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So it looks like your Cash ISA savings may be safe from a tax raid for now. We’ll of course keep you updated with any changes throughout the year, including an April update about the Chancellors’ Spring Statement.  

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While we’re on the subject… the end of the tax year ends on 5 April

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Whatever the ISA weather, it’s always a smart move to make the most of your £20,000 allowance.

When a tax-year ends, any remaining ISA allowance is lost and can’t be rolled-over, so it’s use it or lose it. 

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• Build wealth long-term with a Stocks & Shares ISA
• Grow your cash savings in a Chip Cash ISA

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You have until midnight on 5 April 2025 to use it, but here’s a reminder of all the important dates and times you need to make sure your deposits arrive in time.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than your original investment. Seccl Custody Limited is the ISA Manager for the Chip Stocks and Shares ISA. A monthly or annual ChipX membership is required for certain funds selected within a Stocks and Shares ISA. Fund management charges apply and ISA limits apply.

What’s new at Chip?

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Our focus this month is making investing with Chip easier and more accessible than ever. Introducing our brand-new feature — Dual Track. 

Whether you’re new to investing, or you already know what you’re doing, Dual Track will help you choose the right path.

Just select the option in the app that’s right for you, and we’ll take you down a personalised journey that suits your experience level.

Dual track includes:

• ‘Selected for You’

Investing with Chip is easier than ever with the ‘Selected for You’ journey — it’s just one simple choice between three expertly fund-managed options (Cautious, Balanced and Adventurous). It’s smart investing, made effortless.

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• ‘Do it yourself’‍

For those who like to go their own way, you can pick from the full range of investment funds we offer to invest exactly the way that works for you.

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The last honourable mention of the month (although not market-related) goes to our Prize Savings Account, which was featured on BBC Morning Live as a top place to save and win prizes, and we couldn't agree more!

That’s all for your monthly update, see you next month for all the latest investment updates that matter. 

May your gains be plentiful, 

Stephen

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Sources: (1) Reuters (2) Bloomberg (3) CNBC (4) FT (5) MorningStar (6) Telegraph 

When investing, your capital is at risk. The value of your investments can go down as well as up, and you may get back less than your original investment. Chip does not provide financial or tax advice and this is not a personal recommendation to invest in any fund.