As US tariffs rise, many investors are facing sleepless nights due to market instability. Experts offer guidance on how to protect portfolios during this uncertain period.
A recent surge in searches for “financial insomnia” on Google, which spiked by 24% in the past year, signals growing unrest among investors. This increase reached a peak this month as retail investors struggle to make sense of the ongoing volatility.
Portfolios with heavy exposure to imports and global supply chains, particularly in tech and retail sectors, are taking significant losses. On the other hand, stocks that are more focused on the domestic market, such as utilities and consumer staples, have become safer choices in the wake of the tariff increases.
Rising Investor Anxiety
The recent surge in tariffs has pushed many anxious investors toward alternative strategies, including options and futures trading. Experts suggest that a clear, step-by-step recovery plan can help investors regain control and reduce stress in these turbulent times.
The sharp tariff hikes, which now include a 145% tariff on Chinese imports and 25% on most goods from Canada and Mexico, have pushed the average US tariff rate to its highest level in over a century. While the administration describes it as a “trade rebalancing,” markets remain rattled, and many investors are struggling to stay calm.
Fei Chen, CEO of Intellectia AI, points out, “Tariff increases often lead to market pullbacks and heightened anxiety. What investors need now is clarity, not panic.”
How to Navigate the Turmoil
Experts advise the following steps for investors to manage the current volatility:
Diversify across asset classes: Stocks, bonds, commodities, and real estate can all provide stability.
Focus on US-based companies: These companies, which rely less on imports, may weather the tariff storm better.
Consider hedging: Use options or futures to protect against short-term fluctuations in the market.
Resist panic selling: Set stop-loss orders and stick to your long-term investment plan.
Reevaluate risk tolerance: Adjust your portfolio according to your current comfort with risk.
Fei Chen reminds investors, “Market volatility does not last forever. Times like these often create once-in-a-decade opportunities for those who are prepared, not panicked.”
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