Some Analysts Are Advising Investors To 'Think Twice' Before Leaving The Stock Market Despite Trump Tariff Downturn

President Trump's "Liberation Day" tariffs sent the stock market into a frenzy, with stocks plummeting across the globe and experts worrying that a recession may already be here. But as voters frantically anticipate next moves on the economy, some experts are advising investors to "think twice" before bailing out.

Wall Street's main benchmark, the S&P 500, has lost more than 16% since setting an all-time high on Feb. 19, mostly as a result of worries about President Donald Trump's tariffs.

Beijing responded to Trump tariffs on Friday, slapping its own 34% tariffs on all U.S. imports, matching the new so-called reciprocal tax rate imposed by the U.S. president on Wednesday. The tariffs come into effect on April 10, one day after the tariffs imposed by Trump, who on Monday upped the ante once again by threatening an additional 50% levy.

But despite the chaos that the infamous "Liberation Day" ensued across the country, and the world, experts are advising stockholders to not be so quick to close their positions and cut losses.

Selling stocks may offer immediate relief to the public, but the decision also prevents the chance of making the money back over time, analysts quoted by the Associated Press say. Historically, the S&P 500 has come back from every one of its downturn, which includes the Great Depression, the dot-com bust and the 2020 COVID crash.

Some recoveries take longer than others, but experts often recommend not putting money into stocks that people can't afford to lose for several years. Emergency funds, for things like home repairs or medical bills, should not be invested in stocks, they say.

"Data has shown, historically, that no one can time the market," said Odyssead Papadimitriou, CEO of WalletHub. "No one can consistently figure out the best time to buy and sell."

That is why specialists advise diversifying investments, rather than going all-in on just a few.

"It is hard to roll with the punches when some days you feel like your portfolio is being pummeled," said Brian Jacobsen, chief economist at Annex Wealth Management. "But those moments should pass. A diversified strategy that is thoughtfully adapting to changing circumstances can't prevent the punches, but it can help soften the blows."

Likewise, Phil Battin, CEO of Ambassador Wealth Management advises investors to lean towards "resilient sectors such as consumer staples, utilities and health care, which are less reliant on international trade."

At the same time, people with shorter investment timelines, as well as those nearing retirement, often shift more assets into bonds, which have historically shown greater resilience during downturns, The New York Times reports.

It remains unclear how far the Trump administration is willing to go for its trade war, though the president is repeatedly claiming he won't back down. The new wave of Trump tariffs could lead to even more turmoil in the markets. When asked by reporters on Sunday about the market turmoil and fears of a recession, Trump said that "sometimes you have to take medicine to fix something."