LAFAYETTE, KATC - The stock market took a major dive this week following President Trump’s announcement of sweeping tariffs on all imported goods to the U.S. On Wednesday, Trump revealed plans for tariffs on all goods coming into the U.S., including cars, clothes, and food.
“This is one of the most important days in my opinion in American history. It’s our declaration of economic independence,” Trump said on Wednesday.
The very next day, Thursday, marked the worst day for U.S. stock markets since June 2020, during the height of the pandemic. The tech-heavy Nasdaq saw a sharp decline, falling 6%, while other major indices were hit hard as well. The Dow Jones Industrial Average dropped over 2,200 points, a 4% loss.
Despite the plunge, some financial experts see opportunities amid the volatility.
“This is a normal cycle of the stock market. We’ve seen this before,” said Randy Hux, founder and president of Hux Capital Management in Lafayette. “This is an opportunity of a lifetime.”
Hux, a local financial advisor, spoke about the current market conditions and the broader economic implications of the tariff announcement.
“We are going through some changes in the marketplace that have been needed for decades, and we finally have somebody instituting tariffs that are really going to change our economy,” Hux said. “While it may be difficult in the short term, these changes could lead to long-term benefits.”
However, not all experts share Hux’s optimism. Caleb Silver, editor-in-chief of Investopedia, a global financial media platform, warns that the uncertainty generated by these new tariffs could slow down the economy.
“Uncertainty is really spread across businesses and households because we don’t know how much it’s going to cost in the future,” Silver said. “That’s going to lead to an economic slowdown. The real question is for how long?”
Hux acknowledged the concerns raised by Silver but emphasized that investors should consider their long-term strategies, especially when it comes to diversifying their portfolios.
“It depends on what stage of life you’re in. Consider your strategy because if all your eggs are invested in one basket and it’s all in the stock market, that’s probably really a poor strategy,” Hux said. “We recommend that clients have gold, silver, and some bitcoin in their portfolios.”
As the market remains in a period of uncertainty, experts agree that now is a critical time for investors to evaluate their strategies and make adjustments where necessary.
