It's a scary time for new and veteran investors alike as U.S. and international markets churn amid President Donald Trump's unprecedented retaliatory tariff actions. Scarier still is no one knows what will happen next. But according to one long-time asset manager, one of the worst things investors rattled by market volatility can do now is to make changes to their existing strategy at the exact wrong moment.
Called "abandonment risk," Mike Reidy, managing director at Principal Asset Management, says even a small drawdown in funds now can lock in losses and reduce long-term wealth accumulation when the market rebounds. Abandoning stocks now risks missing out on the upswing.
