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.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
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.”
TRENDING STORIES:
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.
“The problem is, if we really do go into a significant recession, a lot of us who think our jobs are safe, they’re not going to be safe. So I’d rather instead of people making bug purchases, to stall on those and put your money in savings.”
Howard says that there are a couple of positives right now. Mortgage rates are dropping and because of concerns that people might limit travel, travel could end up cheaper this summer.
The one thing that’s clear over decades of data is that the stock market recovers.
[SIGN UP: WSB-TV Daily Headlines Newsletter]
