The stock market has just led a two -day historic dive in the middle of panic caused by the trade war of President Donald Trump.
Friday, the Dow Jones Industrial Average disappointed more than 2,200 points, the Nasdaq 100 ended with a lower market and the S&P 500 lost almost 6%.
This adds to Thursday’s decreases, the two -day crash spraying more than 5 billions of dollars in market capitalization.
No S&P 500 sector was spared, and at the end of the Friday session, investors took stock of the worst week for the market since the first days of the covid-19 pandemic in 2020.
In these moments, people can be tempted to peak in their investments and to ask: what?
Although “do not panic” is a sage advice, the impulse of taking drastic measures can be strong, especially if you look at a sea of red in your investment wallet.
The retirement horizons are long, and the story shows that the general trajectory of actions is increasing and right. However, if you need to make adjustments to your investment for any reason, there are general advice that could help you withstand the storm.
Here are some recent advice market professionals have shared with Business Insider.
Does not sell while the market has broken down
Deep dives are often followed by a rebound on the market, and even if the market does not associate a complete return, if you need to sell, you have to wait for things to run.
Like Gina Bolvin, the president of the Bolvin Wealth Management Group, said measures to take before a recession in Matt:
“Do not panic. Large titles – and the market – change quickly.”
There are safety shelters in the storm
Familiarize yourself with the actions considered to be cyclical (those which tend to outperform when the economy is strong, such as the discretionary actions of consumers), and those which are defensive (such as basic consumption actions).
Consumer foods are the most efficient S&P 500 sector in 2025, up 5.4% even after two days of market carnage. In comparison, discretionary consumption shares are down 17% for the start of the year, technology is down 18% and communication shares are down 10%.
Gold and treasurers have also been historic shelters, and investors can easily obtain exposure through ETFs.
“The only change to your wallet should be confirmed that it is diversified and that you can resist the storm in the right or bad times,” said Bolvin.
Resist the urge to trade
It may be tempting to try you on day negotiations by timing the market or deploying a strategy of exotic options to take advantage of the swings.
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However, the options are complicated and day trading is difficult for experienced pros. The hard truth is that most day merchants lose money.
Buying and holding is always the best way to protect yourself.
Make money
It is important to have some of your cash or cash investments, such as a money market fund. Whether it is to save for an emergency or to seek to deploy it in future investments, Cash holding ultimately protects from some of the drawbacks in the event of a large dive on the market.
“Even apart from a recession, you should aim to have a cash amount to finance at least six months of your expenses, or if you are retired and you have no employment income to support your expenses, perhaps up to two or three years,” said Brett Panziera, CFP, a associate director of financial planning at EP-Fealth Advisors, told Bi’s Fox.
