On this week’s episode of Tape Talk, Quint and Daniel dissect the recent market volatility on the heels of the news of US tariff hikes.
The United States and China have had an increasingly difficult time finding agreement on trade. Recent revisions to the deal by China led to President Trump implementing a new 25% tariff on a basket of goods from the country. This prompt shift from closing in on a deal to the negotiations entering rough waters left US stocks navigating increased volatility in an attempt to discern what lies ahead.
Managing Rough Waters
When it comes to managing through periods of volatility, it all comes down to your risk temperament and risk tolerance. Investors must strike a balance between the amount of volatility that will allow them to sleep soundly at night with the amount that their portfolio can tolerate on the path to their goals. Both knowing and implementing these two are key to long-term success in reaching your financial goals.
Sticking to a Plan
The final piece of the puzzle in volatile times is ensuring you have a financial plan in place and are reviewing that with your advisor during times of uncertainty. Since investing without a plan is more like gambling, we believe this element of an individuals’ financial picture is essential for their long-term success in navigating choppy markets.