The last few weeks have not been fun if you’re an investor. So, I thought a humorous blog about Trump, tariffs, and the stock market was needed. If you have been crying over your investment portfolio, this may bring a smile to your face.,
Why Investors Worry During Market Turmoil
If you want to work less, earn more, and be wealthy, then the chances are you are going to have to make investments. The share market is a common strategy, and it usually works. But when the market tanks, it can be worrying.
The decisions you make during such volatile times determine how much wealth, financial freedom, and free time you will generate. Now for some fun.
Trump, Tariffs & Market Chaos
Right then. So, you’re fed up with Trump? Join the club. His tariffs are giving you a migraine, and every time you turn on the TV, it’s nothing but screams about global economic Armageddon.
Last Friday, I sat there watching our share portfolio take a pounding so brutal that even Thor would’ve cried. My heart was beating so fast I thought it would run away. It was like watching my beloved Aston Martin being keyed in slow motion, painful, maddening, and completely out of my control.
I had to tell my kids they’d lost $2,000 on Friday. Silence. Then Monday hit
- 35 minutes after the Australian market opened, they were down another $4,000 each.
- Tuesday, they were up by $3,000.
- Wednesday, down $2,500.
- Thursday, up $6,000.
At this point, I think my kids believe the dog could invest better than me with a laser pointer. Honestly, they might be right.
How the Media Spins Tariffs & Recession
Here’s the problem: the media loves chaos. Recession? Bloodbath? Economic disaster? It’s Christmas for them. And instead of Santa, we’ve got Trump waving tariffs around like a lunatic with a bazooka.
Headlines scream that Trump’s tariff plan will destroy life as we know it. According to them, we’ll soon be living in caves and trading children for scraps of bread.
But here’s the truth: the media thrive on panic. And panic sells.Should You Cash Out Investments During Tariffs?
Now, let me be clear: I’m not a financial planner. But I do have history and memory on my side.
Cashing out investments may sound tempting. But investing during turbulent times is not always madness. In fact, this week, I even recorded a podcast on Trump and his tariffs.
Trump’s tariff plan may and I stress may make some sense. The U.S. has been borrowing heavily for six decades. Shock therapy might seem necessary. But the American manufacturing base is weak, and the strong dollar makes exporting difficult. You cannot expect Apple to open factories overnight.
So what’s the fuss about?Why Tariffs Spook the Market
The volatility stems from Trump’s unpredictable announcements:
- One day it’s 34% tariffs on China.
- Next day 104%.
- Then 125%.
Markets panic. Even his allies call him stupid and bonkers.But when the market started selling U.S. bonds, Trump blinked. Tariffs are now paused for 90 days.
The problem? America has $38 trillion in debt. Rising bond yields mean higher debt servicing costs, not exactly Make America Great Again.
And with tax cuts he cannot afford, Trump needs to fund them from China, the EU, and the rest of the world.
The Long-Term View: Markets Always Recover
So, what am I doing now that the financial world is apparently ending? I’m still investing.
Markets fall. Then they rise. Then they fall again. Over time, however, stock markets trend upward. My book The Passport to Real Wealth and Financial Freedom for Business Owners shows exactly this with charts and graphs.
That’s why I’m not panicking and neither should you.Financial Wisdom for Investors
Here are a few lessons I share with my kids and clients:
- Pay off your mortgage fast: I cleared mine by 38. My business partner Ros, by her early 40s. It can be done.
- Don’t panic-sell investments: Market downturns are temporary.
- Retirees: Keep one year’s worth of expenses in cash. That way, you won’t have to sell shares during a crash.
- Young investors: Stick with index funds. History is on your side.
Even though my portfolio currently looks like a crime scene of red blood, I’ll likely buy more index funds. Why? Because prices are low and in 10-15 years, that decision will probably make me look like a genius.
So, stop panicking. Let history and patience work for you.Final Word on Trump, Tariffs & Your Money
Yes, Trump’s tariffs have shaken markets. Yes, the media is exaggerating. But history shows that investors who stay calm and keep investing come out wealthier in the long run.
Disclaimer
Hitesh Mohanlal and the WOW! Advisors Group is not licensed to provide financial planning advice. This article is general in nature and should not be taken as investment advice. Please consult a licensed financial planner before taking any action.
Frequently Asked Questions
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