{"id":150457,"date":"2025-08-16T12:18:14","date_gmt":"2025-08-16T12:18:14","guid":{"rendered":"https:\/\/www.europesays.com\/us\/150457\/"},"modified":"2025-08-16T12:18:14","modified_gmt":"2025-08-16T12:18:14","slug":"4-ways-investors-are-responding-to-tariffs-and-what-they-should-be-doing","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/150457\/","title":{"rendered":"4 Ways Investors Are Responding to Tariffs \u2014 and What They Should Be Doing"},"content":{"rendered":"\n

As President Donald Trump\u2019s tariffs continue to roll out, investors<\/a> are bracing for changes. The majority of investors (90%) expect the tariffs to extremely or somewhat affect the economy this year, according to Moomoo\u2019s<\/a> Midyear 2025 Investor Survey.<\/p>\n

Find Out: Self-Made Millionaires Suggest 5 Stocks You Should Never Sell<\/a><\/strong><\/p>\n<\/p>\n

Read Next: 3 Reasons Retired Boomers Shouldn’t Give Their Kids a Living Inheritance (And 2 Reasons They Should)<\/a><\/strong><\/p>\n

In anticipation of these economic shifts, many investors are making adjustments to their strategies, including reducing their risk levels and buying or selling stock. Here\u2019s a look at how investors are responding to tariffs, and how these shifts may or may not pay off<\/a>.<\/p>\n

The most common reaction investors have to Trump\u2019s tariffs is reducing the level of risk in their portfolios<\/a>. According to the survey, 40% of investors are taking a more cautious approach and shifting their investments to less risky securities.<\/p>\n

\u201cNinety percent of our clients said they expect tariffs to impact the economy, and if that is your view, then it makes sense to be a touch more cautious,\u201d said Neil McDonald, Moomoo U.S. CEO.<\/p>\n

This could mean rotating out of highly leveraged products or aggressive trading options, and investing in more value stocks.<\/p>\n

Check Out: I\u2019m a Financial Advisor: 4 Investing Rules My Millionaire Clients Never Break<\/a><\/strong><\/p>\n

Trump\u2019s tariff announcements have caused wild swings in the market, and some investors have been taking advantage of the downswings<\/a>. Nearly 1 in 5 investors (18%) used sell-offs to buy more stocks.<\/p>\n

While this strategy can pay off, it\u2019s important to do your research before adding to your portfolio.<\/p>\n

\u201cWe do have more active clients who have used every dip to commit more money to the marketplace, and they\u2019ve often done well,\u201d McDonald said. \u201cRetail [investors] tend not to trade [based on external] noise too much. They\u2019ve been trading long enough that they understand that they\u2019re going to have 10%, 20% dips, you\u2019re going to have sell-offs and panics, and they [use these opportunities] to buy more.\u201d<\/p>\n

On the flip side, some investors (10%) are planning to or have already sold all of their stocks as a reaction to market volatility. While panic selling isn\u2019t always the best investment move, it may be a necessary one.<\/p>\n

\u201cIt\u2019s down to personal circumstances,\u201d McDonald said. \u201cPeople are having to sell stocks because they\u2019ve lost their job, they\u2019ve got to pay their car loans, they\u2019ve got to pay their student loans. That\u2019s absolutely understandable.\u201d<\/p>\n

Story Continues <\/p>\n

While many investors are making changes to their investments<\/a> in response to tariffs, nearly one-third are continuing on with their current strategy \u2014 32% of investors said they have not changed their strategy at all.<\/p>\n

\u201cWe have a lot of clients who do dollar-cost averaging, putting in money every single month, and that kind of strategy over the past two, three years, it\u2019s really paid off,\u201d McDonald said. \u201cIf you\u2019d have sold any of the dips, you\u2019d have missed a lot of return.\u201d<\/p>\n

Investing consistently typically has better results than trying to time the market based on external factors like tariffs.<\/p>\n

\u201cYou have to get two things right in trading \u2014 you have to get direction right and timing right,\u201d McDonald said. \u201cTo get them both right at the same time, that\u2019s almost impossible.\u201d<\/p>\n

More From GOBankingRates<\/strong><\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: 4 Ways Investors Are Responding to Tariffs \u2014 and What They Should Be Doing<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"As President Donald Trump\u2019s tariffs continue to roll out, investors are bracing for changes. The majority of investors…\n","protected":false},"author":3,"featured_media":150458,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,8709,135,88414,67,132,68],"class_list":{"0":"post-150457","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-investors","10":"tag-markets","11":"tag-neil-mcdonald","12":"tag-united-states","13":"tag-unitedstates","14":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115038409493406355","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/150457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=150457"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/150457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/150458"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=150457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=150457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=150457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}