Market Chaos Under Trump Has Investors Running for Safety — What Does That Mean for You?
Written by
Laura Bogart
Edited by
Kristen Mae
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Many voters likely pulled the lever for Donald Trump in 2024 hoping for an economic upswing, but the reality of 2025 suggests that they might be in for anything but. Headlines warn of a potential recession, and prices don’t appear to be going down.
The stock market is also experiencing significant swings, and not always in the right direction: As of March 26, 2025, the S&P 500 is down more than 7% from the highs it reached in February.
U.S. Bank attributes some of this market volatility to factors like uncertain tariff plans. But whatever the cause, you’re likely wondering one thing: What does this mean for me? Or maybe two things: What should I do about it?
While the circumstances may not feel ideal, there are some steps you can take to blunt the impact on your investments.
Look to Emerging Markets
As U.S. stock indices are blown about by the winds of market fluctuations, experts like JPMorgan suggest that savvy investors turn their attention to emerging markets. Calling these markets “an accidental beneficiary” of worries about a potential Trump-related crash, JPMorgan notes that emerging markets stand to benefit if growth concerns push down the value of the U.S. dollar — a scenario that could boost emerging market assets.
Comparing emerging markets to developed markets, JPMorgan sees emerging market assets as sliding through the “air pocket” created as the American market attempts to correct itself:
“EM should look better vs DM over the following months, at least relatively, as DM activity air pocket is worked through. Within this, we stay bullish China Technology exposure, and think that EM ex China will also trade better, partly on likely increasing policy stimulus.”
Working with a trusted advisor to identify emerging market stocks or ETFs that align with your interests and risk tolerance could be a great way to broaden your investment strategy.
Explore Tariff-Proof Industries
Analysts are saying Trump’s tariffs on Mexico and Canada are one of the greatest factors contributing to market volatility. If you don’t want to feel like you’re getting sticker shock every time you check your portfolio, consider diversifying with stocks from industries that aren’t directly impacted by international trade disputes.
In a Kiplinger article about how to invest during Trump’s second term, contributor James K. Glassman advises investors to focus on domestic companies with minimal international exposure. His top stock picks to strengthen your portfolio against tariff tumult? Insurance companies like Allstate and credit card companies like Capital One Financial.
Learn Not To Panic
Easier said than done, of course. But a strong backbone is the hallmark of a smart investor. Kiplinger writer Karee Venema wants you to remember that inconsistency was a constant during the first Trump administration, with the market reacting quickly to each policy announcement, comment and social media post.
“However, investing is a marathon and not a sprint and the most reliable gains occur over long time frames,” she wrote. “Indeed, the S&P 500 has averaged an annual return of 10% over the past 20 years.”
Don’t buy and sell based on the daily ups and downs of the market — it can hurt your long-term returns. And if you find yourself unable to stomach the anxiety these changes can cause, Venema recommends considering low-volatility ETFs, since they have a lower risk profile than traditional index funds.
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