President Trump’s trade war is impacting investors, and it’s essential to know how to protect your portfolio during this time. Here are three key strategies to consider:
Diversification is crucial in reducing the risk of extreme market fluctuations. Review your portfolio to ensure it’s well-diversified across stocks and industries. This will help you ride out headwinds in one area by compensating with gains in another.
Investing in companies that are undervalued due to recent market declines can be a great opportunity. For example, Nvidia is currently trading at 26x forward earnings estimates, down from over 48x earlier this year. Hold some cash for these opportunities, but ensure you have covered your bills and near-term obligations before setting aside funds.
Focusing on the long term will help you avoid making impulsive decisions based on short-term market fluctuations. Consider a company’s long-term prospects and ask yourself if it has what it takes to manage challenges like tariffs and inflation. If the answer is “yes,” hold onto your investment, even if it struggles in the near term.
By following these strategies, you can protect your portfolio during uncertain market times and potentially reap significant rewards in the long run.
Source: https://eu.usatoday.com/story/money/investing/2025/03/28/things-every-investor-should-do-trade-war/81890851007