As the stock market falls amid tariff announcements, Pittsburgh area investment officer gives his advice
It was a manic Monday on Wall Street after President Donald Trump threatened to crank his tariffs even higher and U.S. stocks tumbled for the third straight day.
Stocks dropped over 1,600 on Thursday and then 2,000 on Friday. Today, the Dow ended down 349 points.
"This is a shock that markets haven't really dealt with before," said Joe Rennison, Financial Markets Reporter for the New York Times.
"We've been ripped off and taken advantage of by many countries over the years, and we can't do it anymore," Mr. Trump said.
Investment bank Goldman Sachs issued a new forecast saying a recession has become more likely, even if the president reverses course.
Now the question is, if you're an investor, what do you do?
Newly elected Pennsylvania Senator Dave McCormick spent part of the morning touring a Mon Valley battery production facility, Eos Energy, and Sen. McCormick thinks the tariffs will help strengthen their business.
"The essence of the tariffs, which is to try and bring fairness, makes sense, and now they've got to be executed in a way that's going to be good for [Pennsylvania] and the country," Sen. McCormick said.
After the tour, the senator talked about the historic volatility in the stock market and said to take a breath.
"I'm very conscious about it," he said. "I'm very worried about it. I'm watching to see what these tariffs are doing to the markets, but to business in Pennsylvania, let's give it a little time."
That's the same message that Michael Godwin, the Chief Investment Officer at Fragasso Financial Advisors, is stressing, especially if you're a young investor.
"The best time to invest is right now," Godwin said. "This stock market correction of 20% or so is an opportune time to invest as a long-term investor."
Now, what about the people who are ready to enjoy their golden years but are now worried that those years won't be so golden if the market tanks?
"In every correction, we've had the market always recovered," Godwin said.
Godwin did, however, point out that if you are closer to retirement or already retired, your investments should be diversified.
He said that the bond market is up and international stocks are flat, so make sure you have some investments that aren't tied to the U.S. stock market completely. As for when the stock market roller coaster will pull into the station, Godwin gave his prediction.
"We are likely to see a bump in the stock market and cooler heads will prevail," he said.
Godwin concluded that as the tariff news hopefully gets better, he thinks there will be a reprieve in the equity markets.
