Worried about the market? I encourage you to stay focused on your investment goals. What are your investment goals? Are you wanting to travel, volunteer one day a week for a non-profit in retirement, live part of the year in another state or country, buy land and have a farm, buy a shopping center, travel to another country every year, travel regularly to see family, etc. What goals make you excited about the future?
List them out and review them at least weekly. What are you planning on doing in retirement for fun and to give you purpose? Those are the things that you need to stay focused on instead of the news and a volatile stock market. Historically the stock market goes down 10% each year. Market volatility is very common.
A lot of people are very concerned about the potential imposition of tariffs. President Trump used tariffs or threatened to use tariffs in his first term, as well. Yet, “the Dow Jones Industrial Average returned 56% during the Trump presidency, according to LPL. This represents an annualized gain of 11.8%, which is the best performance for any Republican president since Calvin Coolidge during the roaring 1920's.” Fox, Matthew. “Here’s how the stock market performed under President Trump, and how it compares to previous adminstrations. January 20, 2021.
One of the main reasons President Trump is implementing or threatening to implement tariffs is to move more manufacturing business to the United States. Imposing tariffs can also help reduce inflation. “Historical data suggests that tariffs do not necessarily drive sustained inflation; rather, they create demand headwinds by functioning as a tax and can lead to slowdowns in consumption. In 1971, 2002, and 2018, inflation decelerated following tariff implementations.” What the recent tariffs could mean for the market and investors. Fidelity. February 2025.
So it is important to stay focused on your goals and dreams, continue to regularly contribute to your retirement account, create and stay on a budget, and have your portfolio reviewed to ensure a great allocation that provides diversification so that you are exposed to the best returns of the market and not as exposed to the worst returns. Don’t let the news get you down. Do you think you think the market will be higher in three years, five years, ten years, etc? If you do, then it is important to stay invested.
Every year generally a different asset class outperforms. Let me know if you would like a portfolio review or would like to create a financial plan. This is a great time to schedule a consultation.
Don’t forget to continue to review your investment goals for your future!
*Diversification does not guarantee a profit or protection from losses in a declining market.