BIRMINGHAM, Ala. (WBRC) – The U.S. stock market just wrapped up its worst week since 2020 — and for the second straight day, the downward spiral shows no signs of slowing.
Financial analysts point to the recent Trump tariffs, which officially took effect this week, as the driving force behind the selloff. But what does this mean for your money — especially if you’re approaching retirement, or already there?
At Friday’s closing bell, the Dow Jones Industrial Average plunged more than 2,100 points, while the S&P 500 and NASDAQ each fell nearly 6%.
Marshall Clay, Senior Advisor with Welch Group Financial Management, says now is a critical time to assess your financial game plan.
If you’re retired and your portfolio is down more than 14 percent, Clay says you may be taking on too much risk. He recommends reevaluating your current approach — potentially reducing your exposure to equities to help weather the current storm.
However, for those who still have time before retirement, the outlook may present an opportunity.
Clay says that if you’re a few years out, this may be a good time to invest in equities while they’re temporarily down.
Still, Clay warns against trying to “time the market” — a risky move even for seasoned investors.
“This is a volatile situation. We could have the Trump team announcing that trade deals have been done with certain companies as early as next week and the market could take that optimistic news and run with it and we could have a pretty violent rebound so you don’t want to try and time this. You want to understand what you own, understand if you are taking too much risk, and if you are taking too much risk you probably just want to ride out this storm,” said Clay.
And for younger investors? He says this may be the perfect time to think long-term.
“With prices dipping, Clay explained it’s a good opportunity to explore smart investments over the next few weeks.
While the market may be shaky right now, financial experts agree — keeping a level head and a long-term view may be the smartest move of all.
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