On March 14th, 2025, a trader on the floor of the New York Stock Exchange at Opening Bell.
Timothy A. Clary | AFP | Getty Images
There is no shortage of recent uncertainty. Investors are attracting attention.
The adaptation policy from the White House has caused investors to be whipped in many ways. Tariffs are one of the biggest question marks, market experts say.
Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, combined with uncertainty over federal employment cuts, negotiations to end the war in Ukraine and other issues, combined with “disorientation of market sentiment.”
The stock was wobbling amidst the dizziness.
The S&P 500 was revised last week. In other words, the US stock index fell 10% from its recent high mark in February. The index recovered a bit, but wobbled at the edge of the correction on Tuesday afternoon.
The benchmark fell by about 5% in 2025.
According to Barry Grassman, founder of Glassman Wealth Services, uncertainty is because uncertainty causes investors to become uncertain, stock markets become unstable and there is no idea how policies and other events will affect a company’s capabilities.
Concerned consumers may, for example, squeeze profits and pull back spending. Tariffs increase the cost of certain companies importing or producing goods. It is unclear how other countries will retaliate. Economists generally don’t believe federal trade policies and job cuts will drive the US into a recession, but Trump has not ruled out the possibility.
Glassman, a member of CNBC’s Advisors Council, said: “People will put more dollars where they are more confident in their investment,” he added.
Many “unanswered” questions
There is always uncertainty in the stock market, but now it may feel more serious than it was at other times, experts said.
A recent (and perhaps counterintuitive) example of that uncertainty came when President Donald Trump overturned the course on March 6, delaying a 25% tariff on many imports from Canada and Mexico by a month. The delay occurred two days after the tariffs came into effect.
Despite that “deadline,” the S&P 500 was sold significantly during the trading session on the day, said Beichen Lin, senior investment strategist at Russell Investments.
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“There are still many questions that remain unanswered,” Lynn said.
For example, what happens after a 30-day delay? How can Mexico and Canada respond? Does the US impose customs duties on other countries and products?
Kevin Hassett, director of the National Economic Council, warned Monday of “some uncertainty” about Trump’s tariff policy in the coming weeks. Treasury Secretary Scott Bescent said last week that the Trump administration is focusing more on the long-term health of the US economy than on the short-term volatility.
“It’s all based on emotions.”
Brad Kronz, a certified financial planner and behavioral finance expert, said he believes the stock market turmoil is linked to something more primitive than corporate profits.
“Frankly, it’s all based on emotions,” said Klontz, principal of YMW Advisors in Boulder, Colorado and a member of CNBC’s Advisor Council.
“We like to feel like we can predict the future. When we feel that the future is unpredictable, when we don’t have faith in our leaders, that’s when we start to panic,” Kronz said.
“There’s a lot of fear,” he added.
Amidst the fear, it is important for investors to keep recent market movements in sight, the advisor said.
Glassman said the 10% pullback is not shocking after the second year in a row of annual stock revenues exceeded 20%.
“This is normal,” Glassman said of the market tantrums.
But investors often make bad economic choices by engaging in catastrophic thinking (for example, believing that the market will not recover), Kronz said. They bought high and sold low, he said.
Historically, the market has always bounced higher.
“If you lose $40,000, you have to ask yourself, did you really lose it?” Kronz said. “If you didn’t sell, I don’t know if you lost it. If you sold, I guarantee you lost that $40,000.”
Focus on what you can control
During times of uncertainty, investors need to focus on what they have control over, Kronz said.
For example, it’s a good time to see asset allocations and ensure that the holdings of the entire stock bond are not at risk or conservative over time.
Recent volatility also demonstrates the value of diversification between the different asset classes of investment portfolios, Glassman said.
For example, despite US stocks falling, international stocks in both developed and emerging markets have risen this year, Glassman said. He said the bond returns were also positive.
Ultimately, investor actions are the biggest threat to stock revenues, not to the federal government.
