Tariff Opportunity
INVESTING"In the middle of difficulty lies opportunity."
— Albert Einstein
The last two days have reminded investors that markets process new information instantly, quickly adjusting prices up or down based on the evolving landscape. Prices adjust in real time on a granular level when a company misses earnings, or on a global level when new policy is announced. That said, it’s also a time to remind ourselves that attempting to outguess, or predict, market direction is not an ingredient for success.
Global markets are sending President Trump a clear message they are not in favor of the administration’s reciprocal tariff policy. Barriers to trade and the potential for increased prices have created an environment of uncertainty. In the midst of this uncertainty and shifting landscape lies opportunity.These moments are a time to keep in mind that our decisions to invest, and how we will invest, came after many initial discussions on your current situation and what risks we are willing to take after knowing we are insulated against short term market movements. Further stated, each individual’s financial longevity is not reliant upon the dollars we had invested yesterday, have invested today, or will invest tomorrow.
Data, not emotion, will determine our decisions moving forward. Below is a reminder markets recover quickly following big declines.
Thankfully, many discussions with investors the last several days have not revolved around what should have been done, but what can we do to take advantage of this opportunity moving forward. Here is a brief list of what we can control in the days and weeks ahead:
- Begin, or increase, retirement plan contributions
- Fund IRA or Roth IRAs
- Explore Roth IRA conversions
- Tax loss harvesting
- Invest cash that is not needed in the near term
Our office is keenly aware markets have stumbled on the recent tariff news. That said, the impact of a few days, weeks, or even months should not determine or alter your investment approach. This is another bump in the road along our investment journey.
As always, we are here ready to discuss any questions, concerns, or changes in your overall financial picture. Have a great weekend and enjoy time with family, friends, and loved ones.
- Buttonwood Wealth