U.S. stocks ended another tumultuous day Monday as markets continue to reel from President Donald Trump’s latest threats to crank up his tariffs, though some stocks wound up rising before the closing bell.
Shares in Amazon, Nvidia and most of the other dominant U.S. stocks known as the “Magnificent Seven” closed higher. Nvidia gained 3.5%, Meta Platforms added 2.3%, Amazon rose 2.5% and Google parent Alphabet finished 0.8% higher.
But the other three stocks lost ground: Apple fell 3.7%, Microsoft slid 0.6% and Tesla dropped 2.6%.
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Markets are expected to continue volatile swings amid the implementation of tariffs by President Donald Trump. But some financial experts and advisors say the market could be an opportunity for some, depending on your age.
“It’s all about the plan and where they are in their lives,” Financial Advisor Jordan Flowers told NBC Chicago Tuesday.
Here’s a breakdown of what some experts recommend depending on age, as the markets continue to swing.
Retirees
Where Americans are seeing big impacts from the market swing is in their retirement accounts. According to the Census Department, more than 70 million Americans have invested in employer-sponsored 401K programs, saving nearly $9 trillion.
“If you’re near retirement, or are retired, you should not rely on the stock market to that those income from that, so you should have some money that’s safe, that’s secure – some money that’s designed for income,” Flowers said. “But your longer volatile assets should not be what you’re relying on right now.”
Sumit Desai, managing director of Chicago-based Mesirow Financial added that retirees who need to rely on their portfolio for expenses might want to consider adjusting.
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“Rather than trying to time the market and say ‘I will get out and get back in when things improve,’ we really recommend staying invested,” Desai said. “Reallocate and rebalance and make sure you are in quality investments. Have the right allocations to ride through some of these market environments.”
The safest investments in uncertain environments include bonds, U.S. Treasury bills and even corporate bonds, Desai said. The key above all else is to diversify investments to grab as much of the upside in a downtown as possible.
Non-retirees and younger
For those younger, this is an “opportunity to invest,” Flowers said. “Maybe add some savings to the market.”
Those who need money in the next few years need to exercise caution, however, Flowers added.
“You don’t want to be all in the market,” Flowers said. You want to be careful and make sure the money that you need for the next three to five years is not tied to the market.”
College accounts
Flowers added that families saving for college using Illinois’ Bright Start savings plan could be experiencing concerns due to the volatility.
“You’ve got to think a ‘long term plan,'” Flowers said. “If they’re doing 529s and Bright Start, they’ve got to think long term. When you approach paying for college, you’ve got to be a bit less aggressive, right? You’ve got to tone that down. Re-evaluate the plan on an annual basis, not just once every five or 10 years, but always reevaluate. Do not let the markets’ volatility affect your long term plan.”
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