There is so much uncertainty with the new tariffs introduced by the US government and the international stock markets are reflecting said uncertainty.
When the markets opened on Monday morning, the TSX, Dow Jones, Nasdaq, and many international indices were down substantially. By mid morning, the North American markets have rebounded but it is still quite a rollercoaster. Roger Stevenson, Financial Advisor with ProPlan Financial the Co-operators, shares that the markets are reflecting the uncertainty with the new tariffs. “There is a lot of uncertainty. The market dropped 4 to 6 percent right after the announcement. There are concerns about inflation, recession, but I think the bottom line is that no one really knows. Sixty percent of the experts think that the US and the globe is going to head into the recession because of the tariffs but we could have other announcements in days that could change that.”
As for what people should do with their investments while this market uncertainty continues, Stevenson shares that it is very difficult to time the market. “It’s about the time you spend in the market, not trying to time the market. There are many studies that show that timing the market is a losing strategy. It’s a matter of just holding on because if someone decided that they wanted to get out of the market right now, the question would be when to get back in.” Stevenson admits that it is about having a diversified portfolio that matches your risk tolerance.
If you are feeling uneasy about the market fluctuations, Stevenson notes that an appointment with your financial advisor may put your mind at ease. “There are situations all the time where the markets go up and down and react to things that are happening around the world. If you look back at history and how we’ve come through different cycles like this, might make someone feel better about just hanging on. Unfortunately, we don’t know what is going other than the fact that the market, historically, has always recovered.”
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