How to manage your investment portfolio during a trade war

The stock market is on guard now that China's tariffs have risen for an indefinite period. On Monday, the S & P 500 had its worst day since January, the Nasdaq had its worst dip this year and the Dow lost 617 points. Apple stocks also fell by nearly 6%, interest rates in the corporate bond market increased and soybean prices fell. In fact, the trade war is to blame for about a week of declining performance on the stock market. It's time to panic, right?

In fact, do not panic if you like. Some stocks have already rebounded slightly this morning. And they risk bouncing, falling and crooked during the course of trade negotiations. "It's not something that's going to be solved tomorrow, and anyone says they know exactly how it's going to be," said Greg Luken of Luken Investment Analytics at CNBC.

And on Monday, Citi told its customers, according to CNBC, "Ongoing commercial outbreaks may continue to rock short-term equities, but we think the market may have taken them into account."

The market will therefore resist these "sudden outbursts". your money?

What to do with your investments during the trade war?

Last week, Nicole shared Michelle Singletary's advice: Do not even look at your wallet for a few weeks. Wait until the trade war is over. Things will be difficult for a while, so do not give yourself heartburn by checking too often.

But you can tell me, "I can not! I have to mingle! I am too nervous to be patient! Please put kitchen gloves on my hands so I do not do anything foolhardy! "

Our 2015 tip (do you even remember this stock market? I'll guess no.) Still standing: Do not panic. Instead, review your allowance.

As CFP Leah Snell told Lifehacker:

Consider researching and developing a comfortable allocation that is tailored to your risk tolerance in the up and down markets, so that when the next market volatility is up, you are better prepared financially and emotionally.

If you are currently investing in high returns, call your financial advisor for advice. Entering some stocks that have gone down now while prices are low can increase your future earnings. Think of it as a reduction on Apple – or any other popular business you have considered.

However, if you are investing for the long term, such as for your subsequent retirement, a portfolio that can withstand downs and lows will serve you well in the long run. This can mean transferring funds into safer investments (usually bonds rather than stocks) if you are nearing retirement. Or if you run out of Rolaids and just want to feel like it's going to be okay.

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