As President Trump’s tariff policies rattle global markets, in general, financial advisors are urging investors to stay calm, think long-term, and make strategic moves rather than panic. Retirement plan providers report a 30% spike in calls and account activity, reflecting investor anxiety.1
However, advisors emphasize that reacting emotionally — like selling off stocks — can potentially lock in losses and miss future rebounds. Market volatility is normal, and staying focused on longterm goals is crucial.
For those considering major purchases, advisors generally suggest acting now — especially for essential items — before tariff-driven price hikes hit. Still, individuals on fixed incomes should weigh purchases carefully and prioritize needs over wants.
In general, retirees are advised to reassess their risk exposure. Those needing to tap into investments within a few years may want to reduce stock allocations or modify withdrawal strategies — taking less now and more after recovery.
Delaying nonessential plans like vacations or retirement could also make sense. Working longer, deferring Social Security, or timing RMDs strategically may provide financial breathing room and preserve portfolio value.
Finally, selective investing is key. Advisors recommend favoring investment-grade bonds, essentialservice municipal securities, and money markets for risk-averse investors.
While a recession remains a possibility, maintaining a balanced, diversified approach and making decisions based on personal financial plans — not headlines — will help investors weather the storm.
As one advisor noted, “The answer isn’t panic — it’s planning."
KEY TAKEAWAYS
- Stay Calm and Stick to Your Plan: Advisors warn against emotional reactions like panic selling during market downturns. Long-term investment strategies should remain intact, as trying to time the market often results in missed recovery gains.
- Be Strategic with Spending and Withdrawals: With tariffs expected to raise prices, it may be wise to make necessary big-ticket purchases now. Retirees and those nearing retirement should consider adjusting withdrawals and delaying major financial moves like retirement to allow portfolios time to recover.
- Invest Selectively and Rebalance Thoughtfully: Uncertainty calls for a more cautious approach — favoring stable assets like investment-grade bonds and money markets, while gradually reallocating to equities as markets stabilize.