From Morningstar: 2025-04-04 07:44:00

US stocks experienced their worst day since 2020 due to the announcement of tariffs on April 2, causing asset prices to drop. Investors are left wondering how to respond to this sudden development. Tariffs are expected to impact inflation discreetly, slow the economy, and reduce company profits.

Investors are advised to focus on the long-term and not be swayed by short-term political events. Falling stock prices present opportunities to acquire high-quality assets at lower prices. Market sentiment may lead to further price declines, but rebalancing portfolios can help navigate through volatile markets and capitalize on discounted assets.

Dan Kemp, the chief research and investment officer for Morningstar, shares insights on how to navigate the current market conditions. Investors should consider rebalancing their portfolios to take advantage of buying opportunities and reduce exposure to assets affected by tariffs. Market fluctuations may provide better entry points for long-term gains.



Read more at Morningstar: As Stock Markets Slump, What Should Investors Do Next?