Fluctuating policies in Washington are sending parts of the U.S. economy into a state of uncertainty.
As the winds shift and economic moods change, Channel 2 Consumer Investigative Reporter Justin Gray spoke to everyone, from financial advisors to university economists to get a better idea of what consumers should expect.
They had the same message: things like unemployment and inflation rates are in a strong position, but it’s not stopping the stock market drops.
While that may be lowering consumer confidence, and there are big concerns, both of the drops are being caused by the same uncertainty.
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Still, that doesn’t mean you should cut and run.
Retired and on a fixed income, Barbara McKeown told Channel 2 Action News that she’s been worried about tariffs and the stock market’s potential to drop, especially how that could affect her pension.
“I need to buy a new car. I’m nervous about the increase in the prices that it may cost me,” McKeown said. “It makes a difference because I’m on a budget.”
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Consumers like McKeown don’t like the uncertainty during times like this and how they worry it affects them.
Emory University Goizueta School of Business Economist Tom Smith said the stock market doesn’t like uncertainty either and that the uncertainty around American tariff policies is what’s driving the market drop.
“If you’ve got a policy that’s switching every other day, it’s almost impossible to forecast how that’s going to impact you, because you don’t even know if the policy is going to take effect,” Smith said.
Most people with investments are retirement investors, with 401Ks and IRA accounts.
Financial advisor Wes Moss was just writing to his clients when Channel 2 Action News came to talk to him at his Sandy Springs office.
He told his investors the same thing he told Gray: long-term investors should stay put and stay calm.
“It’s hard to ignore daily fluctuations, but the reality is that we’re investing for 20, 30, 40 or 50 years and investors just need to keep their eye on the long-term horizon,” Moss said. “Have a plan, know that retirement is way off into the future. The big t thing is to control what you and I can control.”
Channel 2 Consumer Advisor Clark Howard recommends not rushing into making big purchases over tariff concerns and not making big changes to your investment portfolio.
