{"id":13433,"date":"2025-04-12T17:47:25","date_gmt":"2025-04-12T17:47:25","guid":{"rendered":"https:\/\/finderica.com\/?p=13433"},"modified":"2025-04-12T17:47:25","modified_gmt":"2025-04-12T17:47:25","slug":"7-powerful-actions-taken-and-not-taken-by-boldin-users-during-the-week-of-tariff-turmoil","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=13433","title":{"rendered":"7+ Powerful Actions Taken (and Not Taken) by Boldin Users During the Week of Tariff Turmoil"},"content":{"rendered":"
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No one thinks it is a good idea to take financial advice from random people on Facebook. However, Boldin users prove time and time again to be a savvy group with rational and useful guidance for each other.\u00a0<\/p>\n

Here are 7+ very insightful reactions to last week\u2019s tariff turmoil.\u00a0<\/p>\n

(Just be sure to remember that this is not advice. Afterall: \u201cIt\u2019s tough to make predictions, especially about the future\u201d -Yogi Berra)<\/p>\n

1. Buy<\/h2>\n

Buy low sell high is the classic piece of investing advice and many Boldin users jumped into the market last week to buy stocks at what they believe to be a discount.\u00a0<\/p>\n

Here is what a few people had to say:\u00a0<\/p>\n

Gary:<\/strong> \u201cIf you\u2019re able to, it\u2019s certainly a good time to buy.\u201d <\/em>\u00a0<\/p>\n

Paul <\/strong>commented on Wednesday when the market rebounded: \u201cIt\u2019s a great time to buy while the market is\u2026. awwww nevermind\u2026.\u201d<\/em><\/p>\n

Katy <\/strong>was taking small new positions in stocks she favors: \u201cI\u2019m nibbling\u2026. Favs on sale.\u201d<\/em><\/p>\n

Kim:<\/strong> \u201cRemember: the market doesn\u2019t stay down. I am 3 years from retiring. I increased my contributions to 10% to take advantage of a cheaper market. I did the same in 2020, and my account came booming back. If you sell low, you are selling MORE shares than when the market is high. My future financial advisor said he will invest to protect my investments during these crises. Everyone should have a plan.\u201d<\/em><\/p>\n

Consider buying, but exercise caution<\/h3>\n

A few users were in favor of buying, but cautioned about timing.\u00a0<\/p>\n

Kevin <\/strong>opined: <\/strong>\u201c<\/em><\/strong>Although I agree that a down market is a good time to buy, I believe that the market has much further to drop before it gets back to reasonable, long-term averages for valuations. The market has been over valued significantly over the past few years compared to historical averages. I\u2019m keeping an eye on the market and will consider buying more stocks after the market fall about 50% from the highs. If I had to guess, this will happen within the next 3 months.\u201d<\/em><\/p>\n

2. Reconsider Ideal Asset Allocation<\/h2>\n

There was a lot of discussion around the ideal asset allocation and whether or not target allocations should shift during a downturn in the markets.\u00a0<\/p>\n

Asset allocation is the strategy of dividing your investment portfolio among different asset classes\u2014typically stocks, bonds, and cash equivalents\u2014with the goal of balancing risk and return based on your financial goals, time horizon, and risk tolerance. The mix you choose plays a crucial role in shaping both the growth potential and the volatility of your portfolio. While market timing and individual investment choices get a lot of attention, studies show that asset allocation decisions are one of the most important factors in long-term portfolio performance.<\/p>\n

A classic example is the 60\/40 portfolio<\/strong>, which allocates 60% of the investment to stocks (for growth) and 40% to bonds (for income and stability). This blend is considered a moderate risk strategy and has historically been used by investors aiming for balanced growth while managing downside risk.\u00a0<\/p>\n

Here are some observations about shifting allocations during a market crash:\u00a0<\/p>\n

Stephen <\/strong>commented to someone who has a 20\/80 split (20% in stocks and 80% in bonds) and was considering flipping their allocation to mostly stocks to take advantage of the low prices: \u201c20\/80 tells me you are either very conservative investor, or already in retirement. Either way, a 80\/20 flip, for me, would be fully into freak out land\u2026 I don\u2019t think the current market drop warrants such a drastic change\u2026 but then if I knew anything worthwhile I\u2019d be a billionaire by now! But if you want to take on a little risk\u2026 for the potential gain\u2026 live a little\u2026 go 40\/60\u2026\u201d<\/em><\/p>\n

Glen <\/strong>was also considering a shift toward a more aggressive allocation: \u201cI\u2019m getting ready to shift from our current 60\/40 to 70\/30. I\u2019m \u201csaving\u201d another 10% (going to 80\/20) if the market drops even further, at which point, I will hold until the market recovers. By the way, we are in our mid-to-late 70s and have been retired for 12 years now.\u201d<\/em><\/p>\n

Matthew:<\/strong> \u201cI\u2019m already retired. Went heavy into cash to 50\/50 about a month ago and now buying back to 60\/40 over the next two weeks.\u201d<\/em><\/p>\n

If reallocating, go slow<\/h3>\n

However, the most prevalent piece of advice to people considering a shift in their target allocations was to: \u201cGo slow.\u201d<\/em>\u00a0<\/p>\n

Gradually adjusting your portfolio over time, you can reduce the risk of buying in right before another drop. This approach aligns with dollar cost averaging, where you invest a fixed amount at regular intervals, regardless of market conditions. It helps smooth out the cost basis of your investments and lowers the emotional pressure of making a big move all at once. In turbulent times, patience and a phased strategy can lead to better long-term outcomes and help keep your financial plan on track.<\/p>\n