Particle.news
Download on the App Store
10 ARTICLES
·
2w ago

Trump’s Tariff Policies Drive Market Volatility, Pressuring Retirement Portfolios

Investors face tough decisions as financial advisers emphasize long-term strategies to weather the turmoil.

One of the worst things investors rattled by market volatility can do now is to make changes to their existing strategy at the exact wrong moment.
Traders work on the floor at the New York Stock Exchange in New York City, U.S., April 7, 2025. REUTERS/Brendan McDermid/File Photo
Image

Overview

  • President Trump's sweeping tariff announcements have caused sharp market selloffs, with the S&P 500 down 12.1% since April 2 and retirement accounts experiencing heightened trading activity.
  • Investors are shifting funds from equities to conservative options like bonds and stable value funds, with Monday marking the highest trading volume in retirement accounts since early 2020.
  • Financial advisers stress the importance of maintaining long-term investment discipline, warning that panic selling could lock in losses and miss potential market rebounds.
  • Experts caution against risks like 'sequencing risk' for retirees, where early losses combined with withdrawals can permanently harm portfolio recovery.
  • Historical data shows markets tend to recover from downturns, with advisers recommending diversification and measured rebalancing to manage current volatility.