Economic uncertainty prompts financial strategy reassessment amid tariffs

COLUMBUS, Ohio (WSYX) — As tariffs continue to impact the U.S. economy, financial experts are urging Americans to stay vigilant about their finances and seek professional advice.

Mike Martinez from The Pension Group highlighted the current market volatility, noting that recent developments, such as the pause on automotive tariffs, have led to fluctuations in the stock market.

“Everything is uncertainty,” Martinez said. “We saw yesterday they paused the automotive tariff and the markets went up. Today, we’re hearing futures are down 400 points, and you know, it’s a lot of uncertainty that’s happening.”

Martinez explained that the tariffs affecting Canada, Mexico, and China, combined with massive federal job losses and fluctuating interest rates, are contributing to the economic instability.

“Eventually, as interest rates keep coming down, I think that’s going to be a catalyst to the market,” he said. “But we are going through some growing pains. I know clients are nervous. We’ve seen it across the board, but you know pretty much what we’ve gained at the beginning of the year we’ve given up.”

Martinez advised people nearing retirement to reassess their investment strategies to avoid significant losses similar to those experienced in 2008. He recommended bond strategies yielding 5.25% over the next four years as a means to protect against declining interest rates.

“Not necessarily get out of the market, but reevaluate their situation,” Martinez said. “This is the time to get with your advisor.”

For younger investors, Martinez suggested a more aggressive approach, particularly within 401(k) plans, emphasizing the benefits of Roth contributions and dollar-cost averaging over the long term.

“When you’re younger, in your 20’s, early 30’s, it’s like, ‘let’s be aggressive with that money,’” he said. “But if you’re two to three years away from retirement, how can we readjust the portfolio? We don’t want to go totally to cash, but again that bond strategy is important, looking at individual stocks and bonds can be a pivotal way to reduce that volatility.”

Martinez recommends investors meet at least once a year with their financial advisors, more during unstable economic times like the United States is experiencing now.