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Readers have concerns that President-elect Trump’s policy agenda will unsettle stocks. If you’re tempted to make big portfolio moves, revisit 2020.
Dec. 26, 2024, 9:52 a.m. ET
Nobody knows what will send the stock market into a tailspin, or when that moment may be coming. This is the inherent risk that comes with investing.
But some investors are concerned that President-elect Donald J. Trump’s policy agenda — stiff tariffs, deep federal spending cuts, mass deportations of immigrants — could push the market over the edge, inflicting real damage to the investment portfolios they worked so hard to build.
When we asked New York Times readers to send us their money-related questions after the presidential election, these market concerns ranked high. Several asked what financial advisers are suggesting that people do to protect their savings, whether they’re earmarked for retirement or college tuition. Another told us she was considering selling all of her stocks in January. “Is it wise to do that?” she wondered.
The president-elect does pay close attention to the stock market and seems to view its performance as a reflection of his own. Some experts have said they expect the market’s influence to act as a check on Mr. Trump’s policy decisions.
But when there is uncertainty, we tend to focus on what we can control, and our exposure to the stock market is one of those things. Now is as good a time as any to ensure your portfolio is well positioned to weather any market conditions, regardless of who is occupying the White House.
But it may also help to consider what happened to investors when they did act on their fears during periods of market volatility.
English (US)