Fears of a global recession are growing as President Donald Trump’s new tariff policy takes effect. The market took another hit on Friday, but financial advisors say maintaining a consistent investment strategy is key to weathering the uncertainty.
Federal Reserve Chair Jerome Powell downplayed concerns about a recession, citing low unemployment and stable inflation expectations. However, J.P. Morgan and Allianz have raised their odds of a U.S. and global recession by 20 percentage points to 60% by year’s end.
Experts warn that the risk of a recession has become “uncomfortably high.” Certified financial planners say the key to navigating this uncertainty is maintaining a strong cash reserve and discipline around cash flow. They advise clients to focus on fundamentals, rather than emotions, and to avoid selling into market volatility.
In fact, research suggests that recessions often follow periods of extreme market volatility. The best trading days for the S&P 500 over the past three decades occurred during recessions, often in close proximity to the worst days. Experts warn that being out of the market and missing these opportunities can significantly hurt portfolios in the long run.
While stocks took a beating on Friday, financial advisors emphasize the importance of staying informed and adaptable. “There is some nervous energy,” said one expert, but with a solid investment strategy, clients can navigate this uncertainty and come out ahead.
Source: https://www.cnbc.com/2025/04/04/as-recession-risk-jumps-top-financial-pros-share-their-best-advice-.html