Investors are encouraged to think in the long term, especially if they are younger and do not plan to retire anytime soon.
Some investors, depending on their situation, are more opposed to the risk than others. And an investor opposed to the risk can be on the stock market or have a 401K, but also have investments considered to be at low risk but at low king (such as deposit certificates or fixed annuities).
According to the New York Times financial journalist, Jeff Sommer, investors are experiencing major anxiety during the second presidency of Donald Trump – and something that bothers them is a climate of “uncertainty” and “disturbance”.
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In an article published on April 18, Sommer explains: “Uncertainty has defined the financial markets this year. It does not disappear because the source of the problem is the Trump administration.
Sommer continues, “the risk of higher inflation and slower economic growth, as well as tense relationships with China and with many alumni allies, now seems to be a fact of life … In fact, I think it is time to accept that the disturbance is there to stay. This causes investor problems.”
US Treasury bonds are generally considered to be a safe refuge for investors – even during recession. But according to Sommer, investors even have concerns about obligations.
Sommer Note: “Another objective of the administration policy can cause problems for obligations: to weaken the value of the dollar to make exports of us more competitive and more expensive imports…. Global investors already have a second reflection on the wisdom to have dollars and dollar vouchers, and the value of the dollar has dropped.”
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The Times financial journalist adds: “Like Nellie Liang, a former under-secretary of the Treasury for domestic finance, put it in a room for the Brookings institution, some investors speculate that the cause of fury in treasures comes from the aggressor of pre-eminent world security, consistent with the decline in the dollar”. “” “
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Read the full article of Jeff Sommer’s New York Times on this link (Subscription required).