The potential tariff threat has brought on some uncertainty for many about finances. A financial expert weighs in.
FREELAND, Mich. (WJRT)—Potential tariffs have caused many people to panic about their finances.
The stock market did regain some of its losses today after the Mexican and Canadian pauses.
“Tariffs can do a lot of different things,” said Investment Advisor Nolan McIntosh of McIntosh and Associates out of Freeland.” They can either create market volatility and concerns of whether or not inflation may go up.”
The good news is that President Trump has temporarily paused tariffs on Canada and Mexico for 30 days.
Both countries agreed to send 10 thousand frontline personnel and the National Guard to their respective borders while the Trump administration takes the next 30 days to see if economic deals can be reached in both countries to avoid tariffs.
But markets hate uncertainty and introduces a lot of new questions and unknowns like what should people who are worried about their money do?
McIntosh offers this advice if you’re worried about your investments.
“If we’ve been in a plan where we’re very uncomfortable with seeing our 401k going down or our IRAs or our investments, then maybe it’s time to scale back a bit and be more conservative,” said McIntosh.
He defines that as scaling back or moving money around to work for you.
Plus sticking to a plan and understanding where you are in life all play a factor in these decisions.
But one mistake McIntosh says he sees all too often during times like these is being too emotional.
“A lot of people like to tie their money to emotions and they may say this administration I feel more closely related to so therefore I think the market is going to go up or they don’t agree with their policies so the market is going go down so emotionally I’m going to make trades there,” said McIntosh.
The financial expert says speaking with a professional is important as each situation is different from the next.
But a more conservative approach is usually a good step.
“Typically people will go into a fixed income, bonds, and things of that nature to get more conservative if they’re feeling like the stock market is not the place to be,” said McIntosh.
