From CNBC: 2025-03-19 08:30:01

Stock market volatility has investors on edge due to uncertainty over tariffs, job cuts, and international events. The S&P 500 has entered a correction, down 10% from its peak, with concerns about consumer spending and trade policy impact on profits. Experts urge focus on long-term strategy amid market turbulence.

Uncertainty in the stock market is heightened by abrupt policy changes, like Trump’s tariff delays causing market sell-offs. Questions remain about future tariff decisions and potential responses from other countries. Hassett and Bessent address concerns over tariff policy and emphasize long-term economic health over short-term volatility.

Financial planner Klontz attributes stock market turmoil to human psychology and emotion, urging investors to avoid panic and maintain perspective. Despite recent market pullbacks, advisors stress the importance of rational decision-making and not engaging in catastrophic thinking. Historically, markets have rebounded from downturns, emphasizing the need to stay calm and focused.

In times of uncertainty, investors should focus on factors within their control, like asset allocation and diversification. International stocks and bonds have seen positive returns amidst US market volatility, highlighting the benefits of a well-diversified portfolio. Ultimately, investor behavior, not government policy, poses the biggest threat to stock returns.

Read more: Why uncertainty makes the stock market go haywire