President Trump’s economic policies have created significant market turbulence as his administration reshapes America’s global relationships. The US withdrawal from NATO has sent shockwaves through international alliances, with European countries now scrambling to increase defense spending to unprecedented levels. What these sweeping changes will ultimately mean for investors isn’t clear. The forces driving the equity, bond, currency and commodity markets will change in ways that cannot yet be predicted. So far, the main effect has been a $3 trillion reduction in the value of US stocks since the January 20 inauguration. The only rational response for investors is to stay liquid and agile as the changes continue fast and furious.
The highest conviction stocks coming into 2025 was to buy American exceptionalism by adding to the tech sector and rotate into health and energy. This strategy has faltered amid the administration’s erratic behavior, while Chinese and German stocks have surged by double digits since January 20th. This coming week will be a massive test of Trump’s attitude toward the market with 25% tariffs on steel and aluminum set to hit March 12th, followed by a possible government shutdown on March 14th.
At a speech last Thursday to the Economic Club of New York, Treasury Secretary Scott Bessent emphasized, “Wall Street has done great, Wall Street can continue doing well, but this administration is about Main Street.” This comment contradicts the notion of a “Trump Put” underlying the market, which now seems dubious, especially as Trump continues to announce tariffs only to pause them, sometimes within hours.
Two Insurance Stocks To Add Now
As investors turn defensive, insurance stocks often provide a safe harbor. Two insurance providers worth examining are Root (ticker: ROOT) and Ryan Specialty Holdings (ticker: RYAN).
Root is disrupting the auto insurance industry with its technology-first approach. The company leverages artificial intelligence and telematics to price risk more accurately than traditional insurers. In a surprising turn, Root reported a fourth-quarter profit and higher sales than expected. While sales growth slowed to 68% after four straight quarters of triple-digit expansion, the company achieved its first profitable year in 2024—a significant milestone for this innovative insurer.
Looking ahead, analysts expect Root’s revenue growth to moderate to 18% in Q1 and single-digit growth in subsequent quarters. The company’s near-term earnings outlook shows a profitable Q1 followed by three quarters of losses, with full-year 2025 projections calling for a loss of 42 cents per share. However, Root is expected to reverse course with a profit of 81 cents per share in 2026, suggesting longer-term viability.
Ryan Specialty Holdings offers a different angle on insurance as a leading international specialty insurance organization. The company serves as a wholesale broker and underwriting manager, delivering specialized insurance solutions to retail insurance brokers and their clients. Ryan has demonstrated consistent growth through both organic expansion and strategic acquisitions since going public in 2021.
The company’s steady performance stems from its focus on specialty insurance markets that typically command higher margins than standard insurance lines. With over 3,700 professionals across more than 50 offices worldwide, Ryan’s diversified presence helps insulate it from regional economic disruptions.
While both companies operate in the insurance sector, they represent different risk profiles and growth trajectories. Root offers higher growth potential but with greater volatility, while Ryan provides more stable returns from its established specialty business model.
As market uncertainty increases amid policy shifts and potential economic disruptions, these insurance stocks may offer investors both defensive positioning and growth opportunities. The insurance sector historically performs well during periods of market volatility, as demand for risk management products remains stable regardless of economic conditions.
For investors looking to weather the current market turbulence while maintaining exposure to potential growth, companies like Root and Ryan Specialty Holdings deserve consideration. Their distinct business models provide different entry points into the insurance sector, allowing investors to align their choices with their risk tolerance and investment horizons.
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