From Yahoo Finance: 2025-04-05 12:05:00

The U.S. markets face uncertainty amid the ongoing trade war. Investors, including those close to retirement, are concerned about potential losses and recovery time. President Trump’s new taxes on imports and tariffs are impacting market movements. The market is reeling from recent events, with fluctuating estimates and fears of a recession. Economists predict a potential pullback in corporate investments due to the trade war.

Goldman Sachs forecasts a 5% drop in the S&P 500 over the next three months, with expectations of trading between 5,300 and 5,900. The bank lowered its EPS growth forecasts for 2025. Despite challenges, some economists remain optimistic about equities. Market valuations are high but not extreme, with steady earnings projections for 2025. However, market volatility is expected as investors digest tariff news.

Yardeni Research raises the chances of stagflation to 45% due to Trump’s tariffs, with a possible recession later this year. Despite short-term risks, the research firm expects a positive outlook over the decade. Economists caution against tariffs, noting their impact on goods costs and corporate outlooks. It is advised to have a balanced portfolio with a mix of equities, bonds, and cash for retirement planning.

Retirees, like those in their 60s, should maintain flexibility in financial planning and mindset amidst market fluctuations. The world economy is cyclical, and resilience is key to navigating uncertainties. Economic data on manufacturing, construction, and jobs will be closely watched. Personal finance inquiries about recession risks, investments, family disputes, and inheritance planning are common during volatile market conditions.



Read more at Yahoo Finance: Will Trump’s ‘liberation day’ tariffs hurt my retirement?