As President Donald Trump‘s tariff policies have sparked nationwide unrest and fueled a global trade war, experts have revealed what everyday Americans can do to protect their personal finances in the midst of the mayhem.
The first piece of classic advice – don’t panic and sell all your stocks.
The 78-year-old president has dominated headlines in recent weeks following the enactment of new tariffs, leading to retaliation from China, plummeting markets and raised concerns about soaring prices on everyday essentials.
On Friday, the Standard and Poor’s 500, or simply the S&P 500, dropped a whopping six percent, marking its worst two-day plunge since the start of COVID in March of 2020.
Now, consumers are torn between making big purchases to avoid sky-rocketing prices or saving their money, as the likelihood of a recession this year continues to rise.
‘This is not a case of the market doing something crazy – the world has changed,’ Ben Inker, a protégé of Jeremy Grantham and co-head of asset allocation at GMO, told Bloomberg.
‘What makes the world today so tricky to think about is the really high level of uncertainty – we have no certainty as to how long this stuff will last.’
Through expert advice, finance gurus shared steps that Americans can take in response to the increasing global chaos and unease, starting with urging investors to refrain from selling off all their stocks.
President Donald Trump has dominated headlines in recent weeks following the enactment of new tariffs, leading to retaliation from China , plummeting markets and raised concerns about soaring prices on everyday essentials
Ben Inker, a protégé of Jeremy Grantham and co-head of asset allocation at GMO, believes that investors shouldn’t panic and sell their stocks while also adding that ‘we have no certainty as to how long this stuff will last’
On Friday, the Standard and Poor’s 500, or simply the S&P 500, dropped a whopping six percent, marking its worst two-day plunge since the start of COVID in March of 2020
Marta Norton, chief investment strategist at Empower Investments, advised that diversification – or spreading investments across different assets – may be the best move, rather than investing in the S&P 500 alone
Firstly, Americans should be looking at their portfolio of what they have already invested in.
Marta Norton, chief investment strategist at Empower Investments, told Bloomberg that for a long time, many investors believed that investing in the S&P 500 – or the 500 largest companies – was enough.
Though the S&P 500 has faced some setbacks over the years, it has generally trended upward – a trend now being called into question.
However, she explained to the outlet that diversification – or spreading investments across different assets – may be the best move.
‘So many people have looked at the markets and said “All I need is the S&P 500” because there has been such a prolonged period when diversification has been a disappointment,’ Norton shared.
‘Diversification is really working for investors today.’
Mike Bailey, director of research at FBB Capital Partners, recommended investing in international equities, including those in Europe, Japan and Canada.
Investing overseas, Bailey explained to Bloomberg, can add diversification to investor’s stock holdings, all without adding Chinese equities.
Mike Bailey, director of research at FBB Capital Partners, recommended investing in international equities, including those in Europe, Japan and Canada – informing consumers that the investments can add diversification to investor’s stock holdings
Michael Sonnenfeldt, founder and chairman of worldwide network of high-net worth entrepreneurs Tiger 21, encouraged consumers to ‘buy the dip’, or purchase stocks when the prices tank, as it’s been proven to be a popular and successful strategy in recent years
When it comes to Trump’s universal 10 percent tariff on all goods coming in from other countries, more Americans support the policy than oppose it
Terri Spath, founder of Zuma Wealth in Los Angeles, recommended Americans to consider investing in Germany and Japan through Exchange-Traded Funds, or ETFs
Terri Spath, founder of Zuma Wealth in Los Angeles, concurred, adding that Americans should consider investing in Germany and Japan through Exchange-Traded Funds, or ETFs.
‘Germany is embarking on a generational shift in defense spending that will ramp up its economic growth,’ Spath told Bloomberg.
‘In Japan, nominal economic growth, inflation and wages are benefiting from government reforms and that’s translating into improving earnings.’
Michael Sonnenfeldt, founder and chairman of worldwide network of high-net worth entrepreneurs Tiger 21, encouraged consumers to ‘buy the dip’.
A smart move Americans can make, he explained, involves purchasing stocks when the prices tank, as it’s been proven to be a popular and successful strategy in recent years.
Sonnenfeldt also advised that consumers set up a structured plan to gradually increase their purchases as the markets decline, whether that be directly or through ETFs.
Essentially, his strategy is all about taking advantage of the plummeting market to invest strategically.
‘Investors can move in stages by investing a set amount when the index drops 20 percent from its high, double that amount at 25 percent and increase further at 30 percent,’ he said.
Emily Roland, co-chief investment strategist at John Hancock Investment Management, advised investors to start incorporating certain bonds into their portfolios, specifically high-quality corporate bonds and mortgage-backed securities
Sonnenfeldt also advised that consumers set up a structured plan to gradually increase their purchases as the markets decline, whether that be directly or through ETFs – ultimately taking advantage of the plummeting market to invest strategically
John Pantekidis, managing partner of TwinFocus, believes opportunity lies in investing in defense stocks and the nuclear industry in both the US and Europe
‘That allows investors to take advantage of market volatility without being driven by fear, and to execute a smart offense in a downturn with a strategy that can pay off in the long term.’
Other experts advise investors to start incorporating certain bonds into their personal portfolios.
Emily Roland, co-chief investment strategist at John Hancock Investment Management, told Bloomberg that she recommends adding investments in high-quality corporate bonds and mortgage-backed securities.
Investment-grade corporate bonds are issued by companies with strong credit ratings, therefore, considered low risk.
Mortgage-backed securities allow investors to earn returns based on payments made by homeowners, as the securities are investment products backed by a pool of home loans.
On the other hand, John Pantekidis, managing partner of TwinFocus, believes the opportunity lies in investing in defense stocks and the nuclear industry in both the US and Europe.
‘If the US is abandoning the rest of the world as a security umbrella, countries will run to nuclear because it is cheap and effective,’ Pantekidis told Bloomberg.
‘If that is indeed what Trump does, you’ll see a re-proliferation of nuclear arms and we’ll see more nuclear power plants because if done right, they are effective.’
Katheryn Russ, economics professor at the University of California, advised Americans to stock up on products, as the tariffs will cost households a couple of thousand dollars a year on average, at minimum
Though the S&P 500 has faced some setbacks over the years, it has generally trended upward – a trend now being called into question
Robert Handfield, a supply chain management professor at North Carolina State University, advised to stock up on products, as he is expecting a very short window before the nation sees the full extent of rising prices
According to Katheryn Russ, economics professor at the University of California, Americans should start stocking up on products, as the tariffs will cost households a couple of thousand dollars a year on average, at minimum.
Robert Handfield, a supply chain management professor at North Carolina State University, agreed, as he is expecting a very short window before the nation sees the full extent of rising prices.
‘If you have big purchases you need to make, you might want to think about shopping around to see if they have inventory that hasn’t been hit by a tariff,’ Handfield told Bloomberg.
Though in agreeance, Ben Loughery, founder of Lock Wealth Management in Atlanta, warned consumers to be cautious of any items that require taking out a loan, since interest rates are still high.
Another piece of advice – Americans should splurge on a car now, according to Kyla Scanlon, a financial educator and Bloomberg Opinion contributor.
‘I would definitely recommend trying to get a car sooner rather than later if it’s needed,’ she told the outlet, arguing that consumers should make the move now before prices spike.
Eric Roberge, of Beyond Your Hammock in Boston, has a different take, however. Rather than purchasing a new vehicle, he said, consumers should give their existing car a refresh.
Ultimately, his advice to Americans is to be more cautious with their spending, recommending putting off major purchases when they can.
Kyla Scanlon, a financial educator and Bloomberg Opinion contributor, advised Americans to purchase a car now
Scanlon believes that splurging on a car now will allow consumers to get ahead of the ongoing spiking prices from Trump’s tariffs
Ben Loughery, founder of Lock Wealth Management in Atlanta, warned consumers to be cautious of any items they are purchasing that require taking out a loan, since interest rates are still high
‘We don’t want people to put their lives on hold,’ Roberge told Bloomberg.
‘But if it’s purely a discretionary item that is purely a want and not a need, we’re talking through setting those things aside for now until people feel a little more grounded.’
Jack Heintzelman, a financial planner with Boston Wealth Strategies, revealed that slight changes in retirement plans may pay off in the long run.
He suggested that it could be a good time for Americans to move their money from a traditional IRA, which allows you to defer taxes until withdrawal, to a Roth IRA, which is funded with after-tax money but allows tax-free withdrawals later on.
In simple terms, Heintzelman is advising consumers to pay taxes on their retirement savings now in exchange for the benefit of tax-free growth and withdrawals in the future.
However, he explained, it’s crucial to consult with an accountant before converting to a Roth IRA, as any money you move from a traditional IRA to the Roth IRA is counted as taxable income that year.
The conversion could ultimately push higher tax bracket individuals fully into that bracket, resulting in the possibility of paying more in taxes.
Additionally, he shared, those over 65 may face higher Medicare premiums or the loss of certain benefits that are based on your income level.
Eric Roberge, of Beyond Your Hammock in Boston, advised Americans to refresh their existing vehicle rather than purchasing a new one, adding that consumers should more cautious with their spending and delay any major purchases if possible
An exclusive DailyMail.com/J.L. Partners survey of over 1,000 registered voters conducted from March 31 to April 3 found that the Republican remains largely popular in the U.S, with Trump’s approval rating rising to 53 percent, a 4-point increase over last week when it was 49 percent
Jack Heintzelman, a financial planner with Boston Wealth Strategies, revealed that slight changes in retirement plans may pay off in the long run, suggesting that it could be a good time for Americans to move their money from a traditional IRA to a Roth IRA
Heintzelman explained that it’s crucial to consult with an accountant before converting to a Roth IRA, as any money you move from a traditional IRA to the Roth IRA is counted as taxable income that year
Despite the anxieties, President Trump is proving to be more popular now than before he sent the global markets into a frenzy.
An exclusive DailyMail.com/J.L. Partners survey of over 1,000 registered voters conducted from March 31 to April 3 found that the Republican remains largely popular in the U.S.
The poll found that Trump’s approval rating rose to 53 percent, a 4-point increase over last week when it was 49 percent.
It’s up by 13 points since March 7 among those aged 18 to 29.
Trump also saw a six-point increase in favorability among Democrats and independents, according to the survey.
The Republican’s support among black voters skyrocketed 17 points since last week, the poll found.
When it comes to Trump’s universal 10 percent tariff on all goods coming in from other countries, more Americans support the policy than oppose it.
