The stock market has taken a beating in recent weeks due to President Donald Trump’s imposition of tariffs on imports from China, Canada, and Mexico. However, veteran wealth managers are urging long-term investors to remain calm and not make rash decisions.
According to experts, the uncertainty caused by the tariffs is the primary culprit for the current market swoon, rather than the impact of the tariffs themselves. Market expert Dave Donabedian says that “about two-thirds of the time, the S&P 500 has recovered all that it lost after the shock in a month.” He advises investors not to do knee-jerk selling and instead to wait for news to change.
The market has already shown signs of resilience, with the S&P 500 crawling 0.5% higher yesterday despite the downward trend. Some strategists even see this as an opportunity to buy into underperforming sectors such as small-cap stocks or international markets, which have been outperforming the US in recent times.
Investment expert Jim Baird notes that for long-term investors, often the best decision is to stay out of their own way and avoid making impulsive decisions during market volatility. With interest rates expected to remain low, experts predict a year of slow growth but no recession.
While there is reason for optimism elsewhere in the economy, with inflation easing to 2.8% in February, investors should exercise caution and be prepared for potential news that could impact the market. However, history suggests that changes in sentiment often happen faster than investors expect, and market volatility can be temporary.
Source: https://www.forbes.com/sites/hanktucker/2025/03/13/calming-advice-for-a-chaotic-stock-market