KANSAS CITY, Mo. — The ongoing trade war between the U.S. and Asia is having a big impact on the stock market, and experts are warning that tariffs are causing more uncertainty.
Stacia Williams, founder of Williams Financial Group, said when the U.S. and Asia impose tariffs on each other, it leads to higher prices for imported goods. This creates tension in the stock market, causing stock prices to drop as people get nervous.
Williams said that panic selling can lock in losses and prevent recovery.
“We cannot predict the stock market, so it's one of the things of evaluating your situation, thinking of things that you can control,” she said. “First things first is seeing where you're at in life.”
The best way to handle it, according to Williams, is not to make rash decisions. Work with a financial advisor to better understand your situation.
If you’re nearing retirement, be more conservative and protect your savings; younger investors have more time to bounce back.
Williams also said a good rule of thumb is the Rule of 100. Subtract your age from 100, and that’s how much of your portfolio should be in stocks.
“The older we get, the less risk we should take because we don't have time to earn those monies back," Williams said. "So, is the answer still to make a knee-jerk reaction and pull away from the market? It absolutely is not."
Williams said the simplest piece of advice she can give is budgeting.
“Right now, a budget is more important than ever,” she said. "By establishing a budget, you can see how you can diversify your incomes, your money coming in, and you also get to see what's going out.”
When the market is changing, Williams said to plan for the long-term and not let emotions drive your financial decisions.
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KSHB 41 reporter Olivia Acree covers portions of Johnson County, Kansas. Share your story idea with Olivia.
