How to navigate the stock market during turbulent times
March 4, 2025
In his joint address to Congress, President Donald Trump is expected to lay out his America first vision, and *** major pillar of that is *** dramatic reshaping of US trade policy. Two of America’s top trading partners, Canada and Mexico, now subject to sweeping 25% tariffs that took effect at midnight. President Trump has also said he would hike the tax on Chinese imports to 20%. The president using tariffs as *** pressure tactic to eliminate trade imbalances. And try to stem the flow of deadly fentanyl. The White House is moving forward with implementation despite recent steps from Canada and Mexico aimed at addressing those border security concerns. Now those countries are expected to retaliate, and President Trump and Canadian leaders traded threats on Monday. It’s going to be very costly for people to take advantage of this country. They can’t come in and steal our money and steal our jobs and take our factories and take our businesses and expect. Not to be punished and they’re being punished by tariffs. If they want to try to annihilate Ontario, I will do everything, uh, including cut off their energy with *** smile on my face. They need to feel the pain. They want to come at us hard. We’re going to come back twice as hard. Those comments rattling the stock market as businesses and consumers brace for impact. Many economists suggest that American shoppers could see prices go up on *** range of products because of *** trade war, but the Trump administration has sought to downplay concerns that this could lead to *** spike in inflation. Reporting on Capitol Hill, I’m Jackie DiFusco.
How to navigate the stock market during turbulent times
U.S. stocks fell sharply this week following President Donald Trump’s announcement that new tariffs on Canada and Mexico would take effect, resulting in retaliatory tariffs from both countries.How should consumers navigate the stock market during a turbulent time? The answer, according to an investing analyst, depends on your long- and short-term financial goals.”Investing in stocks can be nerve-rattling, but worried investors should step back and think before selling on emotion,” according to Bankrate Investing Analyst James Royal.When investing in stocks, it is important to take note of when you may need to access your money. “If you don’t need access to your money in the near future, a broadly diversified portfolio of stocks remains the best place for long-term returns, but you’ll need to hold on to your investments to achieve those attractive gains,” Royal said. “If you do need access to your money in the next couple years, then stocks are not the place to have it invested.”Royal suggests that the best action for consumers when the market dips is to evaluate how they’re investing. A dip in the market could be a great buying opportunity for a long-term investor.”If you’re jumping in and out of the market, you’re not likely to achieve the market’s attractive long-term gains, and you’ll run up your tax bill doing it,” he said. “But if you’re a short-term investor, then you’re going up against the market’s sharpest investors and computer algorithms, whose only job is (to) make a short-term buck.”Royal said that investing with a long-term focus can lead to the best chance of financial success.”For retirement savers with a long-time horizon, you’re best served continuing to make regular contributions to your 401(k) in good times and bad times and then holding on,” he said. “When stock prices are high, you’ll buy a little less, and when prices are low, you’ll buy a little more—helping to reduce your risk. This approach keeps you invested and earning the stock market’s attractive returns over time.”As with any personal financial decision, it’s best to consult an expert who knows your individual financial situation in order to make the most informed choice.
U.S. stocks fell sharply this week following President Donald Trump’s announcement that new tariffs on Canada and Mexico would take effect, resulting in retaliatory tariffs from both countries.
How should consumers navigate the stock market during a turbulent time? The answer, according to an investing analyst, depends on your long- and short-term financial goals.
“Investing in stocks can be nerve-rattling, but worried investors should step back and think before selling on emotion,” according to Bankrate Investing Analyst James Royal.
When investing in stocks, it is important to take note of when you may need to access your money.
“If you don’t need access to your money in the near future, a broadly diversified portfolio of stocks remains the best place for long-term returns, but you’ll need to hold on to your investments to achieve those attractive gains,” Royal said. “If you do need access to your money in the next couple years, then stocks are not the place to have it invested.”
Royal suggests that the best action for consumers when the market dips is to evaluate how they’re investing.
A dip in the market could be a great buying opportunity for a long-term investor.
“If you’re jumping in and out of the market, you’re not likely to achieve the market’s attractive long-term gains, and you’ll run up your tax bill doing it,” he said. “But if you’re a short-term investor, then you’re going up against the market’s sharpest investors and computer algorithms, whose only job is (to) make a short-term buck.”
Royal said that investing with a long-term focus can lead to the best chance of financial success.
“For retirement savers with a long-time horizon, you’re best served continuing to make regular contributions to your 401(k) in good times and bad times and then holding on,” he said. “When stock prices are high, you’ll buy a little less, and when prices are low, you’ll buy a little more—helping to reduce your risk. This approach keeps you invested and earning the stock market’s attractive returns over time.”
As with any personal financial decision, it’s best to consult an expert who knows your individual financial situation in order to make the most informed choice.
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