by President Donald Trump implemented his tariff plan, causing mass stock market downturns on April 2nd.
Republicans and the White House say these tariffs have the opportunity to bring manufacturing jobs back to the U.S. However falls in the stock market due to market uncertainty have caused mass losses in retirement funds and stocks.
Though typically these funds return to the stock market over time, those close to retirement are most vulnerable to stock market crashes. Currently it is unknown how much has been lost, but total average predictions will be available when the stock market rebounds.
Quarry Hill Advisors Financial Advisor Emmanuel Bonilla Galvez said that he’s received the most calls he’s had since covid due to investor panic. Uncertainty in the market and pulling back and forth between tariffs has contributed to these mass falls.
Bank of America Senior Trust Advisor Tom Baxter has used his knowledge with his organization to inform his investment decisions.
“I took about 40% out of the market, put it in cash,” Baxter said. “All of the rest of the things I put in the market went down.”
What is currently uncertain is if the market will be able to bounce back from its low. University of Minnesota economics professor Fahima Aziz said these changes will impact those in poverty the most, because they have the least to cut from their budgets.
Aziz’s biggest recommendation, skip out on that $7 coffee now and save for the possibility of unemployment.
Semi-retired courier John Balge is feeling the fear.
“Since the tariffs popped up, I haven’t had the guts to look at my retirement account,” Balge said. “It’s the stupidest, stupidest thing.”
To avoid further loss, Bonilla Galvez recommends reducing risk in your portfolio by moving investments to government bonds. He also recommends not pulling out of the market, as this can cement losses rather than allowing for the market to rebound.
Regardless of age, surviving this downturn is about rolling with the punches and focusing on what’s ahead.
