Tariffs and the Stock Market

To say the market has been a rollercoaster ride is an understatement. As of today (things seem to change daily), there is a 90-day pause on tariffs, except for China. If your nerves are feeling frayed from the market volatility, you’re not alone.

Is it time to panic yet?

It’s a fair question—and one I’ve heard more than a few times lately from clients. The headlines are filled with uncertainty, and investors and Wall Street are trying to make sense of what’s next. Tariffs are dominating the conversation with companies—and their stock prices—feeling the pressure.

What Are Tariffs, and Why Do They Matter?

Tariffs are essentially taxes on goods coming into the country. The idea is to give U.S. manufacturers a leg up by making foreign goods more expensive. But in reality, they can:

Raise costs for U.S. businesses
Raise costs for U.S. consumers
Disrupt global supply chains
Lead to market volatility and investor anxiety

Let’s be honest—no one enjoys seeing their portfolio go down.That sinking feeling? I get it too. When the market drops, the urge to “do something” is strong. But usually, reacting emotionally leads to costly mistakes.

Here’s where we take a deep breath.

We’ve been through uncertainty before—COVID, 2008, 2000 tech bubble—and in each case, those who stayed disciplined and didn’t panic were eventually rewarded. Investors who sold during downturns typically missed out on the recovery.

The truth is:

No one can predict how far the market will fall.
No one knows how long it will last.
And no one rings a bell when it’s time to get back in.

So, what has worked?

A diversified portfolio: Spreading your investments across different asset classes helps soften the blow when one part of the market struggles. It’s not a magic shield, but it’s one of the most reliable tools we have for managing risk and weathering the storm.

A long-term strategy: The markets have always recovered over time—and typically, with strength. Staying invested, especially during the tough times, is how real long-term growth happens.

So—should we stay the course, or let short-term fear dictate long-term decisions? If you know me, you know my answer.

You’re allowed to feel anxious. That’s human. But don’t let fear change your investment strategy. I’m here to help you stay calm, stay focused, and keep your plan on track. I know we are in the midst of our Spring Client Review Meetings, but if you want to talk, give me a call.

About Angela

Angela Dorsey is the founder and financial advisor at Dorsey Wealth Management, a fee-only financial planning firm based in Torrance, California, helping women prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management, and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a CERTIFIED FINANCIAL PLANNER® professional and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion for empowering women to make the best financial decisions possible. Angela lives in Torrance, California, with her husband. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.