(NewsNation) — The stock markets fell for a third successive business day Monday following President Trump’s implementation of reciprocal tariffs across the world.
It has caused panic among some who are uncertain of how the market will respond beyond the initial volatility.
Should you stop investing in stocks or retirement plans?
While the knee-jerk reaction may be to panic and change course with immediacy, most experts are advising against this.
Michael Giordano, private wealth adviser at Williams Wealth Management, joined “NewsNation Now” on Monday to discuss the flow-on effect of President Trump’s implementation of global reciprocal tariffs.
While understanding concerns, Giordano explained that this is part of the nature of investment.
“The trade-off to that is that you’re going to have to deal with volatility at times. So this is just part of the investing experience,” he said.
As for analyzing when it may be time to halt investment or pull money out, he recommended individual introspection.
“What you need to think about is, ‘Do I have a few years’ worth of money and more stable assets that aren’t going to be impacted by what’s happening in the stock market, so that I can weather through this storm?” Giordano said.
What factors should go into your decision?
Decisions are individual, naturally, but Giordano advises that your actions should be aligned with your goals as opposed to riding the emotional roller coaster of the market.
“The key thing here is to understand how much volatility you can handle in your portfolio, get that speed down and figure out how much money you need to fund all the goals that you have … then the rest can be put in the stock market,” he said.
NewsNation affiliate NerdWallet suggests that it may make sense to focus on the long term, despite the current pain.
Should one sell investments in the current downturn, it will likely ensure you have a loss.
“If you own a diversified portfolio, focus on the long term, and consider taking advantage of market downturns when you can, you’re already doing almost everything in your ability to be ready for the next crash,” NerdWallet authors Alieza Durana and Dayana Yochim said.