How to Respond to Tarriffs

Derrick Alexander |

In light of the recent market turbulence—especially surrounding news about tariffs and how they might affect the economy. Right now, a lot of what's happening seems to be the market reacting to the possibility of long term pain, not necessarily the reality of it. That kind of knee-jerk movement can create short-term ups and downs, but it doesn't always reflect long-term fundamentals. Those are still in motion, and we hope to learn more within the coming weeks.

During times like these, it’s important to stick to the core principles of long-term investing. One key principle: we don’t want to sell at a loss out of fear. Instead, this is a good time to revisit your investment goals and timeline.

  • If you're nearing retirement, it might be wise to start thinking about how your portfolio is positioned for income and stability when the market recovers.Article by TIMES Magazine
  • If you’re earlier in your career, this may actually be an opportunity—because market declines can give you the chance to invest at lower prices. Morning Star Article: When to Buy

Everyone's situation is a little different, so if you’d like to review your 401(k) account and make sure your investments are aligned with your goals. Reach out; we offer to help review your portfolio and situation.  

While market indexes may grab headlines when they swing, your strategy is built with long-term goals in mind, not short-term reactions.

That said, this downturn is real - and it can be unsettling. So here’s what we can do:

  • Focus on what we can control, like how we react, how we stay diversified, and how we manage risk.
  • Avoid the urge to panic sell, which historically has been one of the costliest investor mistakes.
  • Remember that these tariff talks are still relatively new and we don't know how things will play out yet.

It’s also worth noting that even on a day like this, there are bright spots. Nonsive areas like consumer staples have held up well. This reinforces why diversification matters—we don’t try to predict the future; we prepare for it. Click here to learn more and contact us.