AUSTIN, Texas — The stock market has lost nearly $5 trillion since President Trump’s sweeping tariffs took effect Thursday, having a devastating impact on the retirement accounts of Americans across the country.
Nearly 70 percent of Americans have money in the stock market, most commonly through 401Ks and other retirement savings. The Dow Jones plummeted by 5.5%, with the S&P 500 and Nasdaq following similar trends.
Angelos Angelou, CEO and Founder of the Austin economic development firm Angelou Economics, says President Trump’s tariffs bring the country closer to a recession.
“The tariffs imposed through almost every country around the world are creating a huge uncertainty in the global economy,” Angelou said. “The declines will probably continue until the markets sort of find a bottom from which they can settle and hopefully go up.”
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Angelou says the stock market isn’t just relevant to Wall Street investors. While uncertainty may cause interest rates to drop for the housing market, retirement savings have taken an immediate heavy blow.
“The wealth of Americans is based on two things, liquid assets that they have in the stock market, or the value of their home,” Angelou said. “Now that retirement may look a little bit further out, because the money, a lot of money, has been lost.”
His biggest advice for people right now?
“Don’t panic. That’s the worst thing that can happen, if you can help it. Don’t panic, don’t sell,” Angelou said. “Just keep your money in the stock market for longer time.”
While he expects the market to eventually bounce back for those not looking to retire anytime soon, it’s a different case for those retiring now.
“In that case, their lifestyles have to change,” Angelou said. “If they were thinking of retiring in a home or someplace that is expensive, maybe there are less expensive choices.”
He says if you’re able to, just hold the line.
“If you’re looking to change jobs now, it’s not the right time to be looking for that,” Angelou said. “Stay in your job.”
Angelou says the market always swings back up.
“Longer term, the U.S. economy is going to do well. We know it,” Angelou said. “It always recovers and reaches new levels of growth, and I hope that comes as soon as possible.”
The stock market reopens Monday, and Angelou says he’d expect to see a bump if negotiations with other countries on these tariffs begin.
