As tariff talk causes stock market volatility, experts say don’t panic
An escalating trade war and ever-changing tariff policies from President Donald Trump are dragging down the stock market, but experts say Americans anxious about their investments and retirement savings shouldn’t panic. U.S. stocks rallied on Friday but all three major indexes still ended the week in the red. The S&P 500 saw a 2.1% boost just one day after closing more than 10% below its record for its first “correction” since 2023.”Markets are going to go up, and they’re going to go down. But you know what? We have to rebuild our country,” Trump told reporters Tuesday.The White House has described recent stock market volatility as “a period of economic transition.” “As for how long this downturn lasts, that is truly anyone’s guess,” said Mark Hamrick, senior economic analyst for Bankrate.Amid that uncertainty, Hamrick said consumers should avoid making any rash decisions around their investments. “Could some fine-tuning or adjustment be in order for some people? Absolutely, and that’s where I think it’s appropriate to talk to a financial professional. But to get out of a market and to know when to get back in is virtually impossible to do, and that’s why we don’t want to act on, on fear or greed through the various performances of financial markets,” Hamrick said.As for those concerned about their 401(k)s, Hamrick said younger Americans have the “luxury of time” for retirement savings to rebound. “If you’re nearing retirement, or if you are currently retired, and you’re seeing your balances go down more than you’re able to stomach, that is a situation where you want to consider dialing down your exposure to stocks,” Hamrick said. “The question for them is, are your assets allocated appropriately? Are you taking on too much risk, and, you know, do you need to perhaps rebalance?” Despite stock market turbulence, recent economic data suggests the job market is healthy, unemployment remains low and inflation is easing.While tariffs have increased fears of a possible downturn, most analysts still predict the chances of a recession are fairly small.
An escalating trade war and ever-changing tariff policies from President Donald Trump are dragging down the stock market, but experts say Americans anxious about their investments and retirement savings shouldn’t panic.
U.S. stocks rallied on Friday but all three major indexes still ended the week in the red. The S&P 500 saw a 2.1% boost just one day after closing more than 10% below its record for its first “correction” since 2023.
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“Markets are going to go up, and they’re going to go down. But you know what? We have to rebuild our country,” Trump told reporters Tuesday.
The White House has described recent stock market volatility as “a period of economic transition.”
“As for how long this downturn lasts, that is truly anyone’s guess,” said Mark Hamrick, senior economic analyst for Bankrate.
Amid that uncertainty, Hamrick said consumers should avoid making any rash decisions around their investments.
“Could some fine-tuning or adjustment be in order for some people? Absolutely, and that’s where I think it’s appropriate to talk to a financial professional. But to get out of a market and to know when to get back in is virtually impossible to do, and that’s why we don’t want to act on, on fear or greed through the various performances of financial markets,” Hamrick said.
As for those concerned about their 401(k)s, Hamrick said younger Americans have the “luxury of time” for retirement savings to rebound.
“If you’re nearing retirement, or if you are currently retired, and you’re seeing your balances go down more than you’re able to stomach, that is a situation where you want to consider dialing down your exposure to stocks,” Hamrick said. “The question for them is, are your assets allocated appropriately? Are you taking on too much risk, and, you know, do you need to perhaps rebalance?”
Despite stock market turbulence, recent economic data suggests the job market is healthy, unemployment remains low and inflation is easing.
While tariffs have increased fears of a possible downturn, most analysts still predict the chances of a recession are fairly small.