When the going gets tough

Tom Brown, Associate Director, Strategy, at Bladonmore gives advice on how to communicate in a volatile, politicized market: go back to basics 

‘Liberation Day,’ as his April 2nd tariff announcement was dubbed by US President Trump, will have its supporters and detractors. And the eventual economic outcome for the US and other countries remains uncertain.  

But what we do know is that it has caused havoc in the stock markets – investors don’t like that uncertainty. Sure enough, the Dow and the S&P 500 have dropped in recent weeks in response to Trump’s pronouncements about tariff plans. And other indices across the globe have followed suit, too. 

Some premier public companies are taking an eyes-wide-open approach to communicating about the effects of tariffs and other policies imposed by Trump. In January, Procter & Gamble said that it might need to hike prices on popular consumer brands like Tide detergent if tariffs end up increasing the cost of imports beyond what can be offset by cost-cutting efforts. On February 20th, Walmart announced that its own forecasts for sales and profits for the current year are falling below Wall Street estimates because of caution in navigating an uncertain geopolitical landscape. And, in a call with analysts on March 4th, Best Buy warned of the possibility of higher prices for American consumers as tariffs on imports from Mexico and Canada take effect.  

Responding to new environment 

For American investor relations officers (IROs), the stock-market’s gyrations are an increasing challenge – particularly as some decisions have been made and then rapidly overturned.  

Although IROs are used to bumpy rides, this time is arguably different. That’s because much of what’s driving volatility in the US markets is the US political scene. CNN quoted Art Hogan, chief market strategist at B. Riley Wealth Financial, ‘This market is just blatantly sick and tired of the back and forth on trade policy.’ 

Overseas pundits have even harsher words for what’s happening in the US. On March 20th, Economist David McWilliams, a senior executive at UBS, urged investors to steer clear of the US for a while, ‘There’s simply too much risk in America – chaos monkeys are running the show – and that’s not good for money.’ Investors who vote with their feet are showing their bearishness on aggressive tariffs. On March 24th, when rumors circulated that Trump would delay or soften upcoming tariffs, markets rallied.  

Go back to basics 

For IROs, communicating in such uncertain times is a matter of perfecting the fundamentals of good IR practice and sending messages that are clear, concise, and consistent. 

Here are some guidelines: 

• Make sure leadership is ready and willing to speak
  ‘People trust people,’ wrote Mark Hayes, partner and head of Breakwater Capital Markets. He urged public companies to let top executives deliver critical messages whenever possible; the mere presence of a CEO or CFO will typically reassure investors better than the most perfectly worded statement can. 

• Shy away from predictions
  When addressing what amount to geopolitical question marks, Lynn Antipas Tyson, executive director of IR at Ford, told IR Impact, ‘I can’t predict – all we can do is prepare.’ One example of how she helps analysts determine numbers by discussing how Ford is expediting the importation of high-value items from Mexico into the US in advance of future tariffs. 

• Communicate early and often
  When news breaks, investors want to hear from public companies that are affected sooner, rather than later.  

• Build trust
  In the 2025 Edelman trust barometer, 68% of respondents worried that business leaders purposely misled people by saying things they know are false or gross exaggerations, up from 56% who harbored the same worry in 2021. This represents an all-time high for distrust within Edelman’s 25-year-old survey. 

 

When it comes to stellar communications, honesty is really the only policy. The best way to convey unwelcome messages is through clear, unadorned language. Be sure to give specifics, when possible, and to be frank in acknowledging what you don’t know. 

If you’re looking for help creating clear, concise, and consistent messaging, get in touch.