{"id":19442,"date":"2025-08-14T19:59:22","date_gmt":"2025-08-14T19:59:22","guid":{"rendered":"https:\/\/finderica.com\/?p=19442"},"modified":"2025-08-14T19:59:22","modified_gmt":"2025-08-14T19:59:22","slug":"why-investors-shouldnt-try-to-be-a-hero-in-this-economy","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=19442","title":{"rendered":"Why investors shouldn\u2019t try to be a ‘hero’ in this economy"},"content":{"rendered":"
<\/span><\/p>\n
\n
\n
\n

Jose Luis Pelaez Inc | Digitalvision | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n

Data suggests the U.S. economy may be in a precarious spot \u2014 and investors may be wise not to take outsized risks with their portfolios for fear of steep losses, experts said.<\/p>\n

“This is not the environment to be a hero in,” Callie Cox, chief market strategist at Ritholtz Wealth Management, wrote this month in a newsletter.<\/p>\n

In other words: Stick to your long-term investment plan, including an appropriate asset allocation and time frame to reach your goals, experts said. Avoid the temptation to funnel a big chunk of money into high-flying shiny objects like individual technology stocks or cryptocurrency, they said.<\/p>\n

“You need to own a basket of quality assets and investments, hold your breath and let markets do their work,” Cox said in an interview with CNBC.<\/p>\n

To be sure, this is sound perennial advice typically offered by financial planners.<\/p>\n

But some market-watchers caution that economic headwinds could serve up ample volatility in the coming months.<\/p>\n

“I think there are a lot of reasons to be optimistic, but also cautious at the same time,” said Winnie Sun, co-founder of Sun Group Wealth Partners, based in Irvine, California, and a member of CNBC’s Financial Advisor Council.<\/p>\n<\/div>\n

<\/a>Economic headwinds<\/h2>\n
\n
\n
\n

Azbycx | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n

The job market appears to have weakened considerably, for example.<\/p>\n

Employers in the public and private sectors added 35,000 jobs, on average, over the past three months, according to federal data<\/a>.<\/p>\n

Job growth from May to July is happening at a “pace you normally see around or in recessions,” Cox wrote.<\/p>\n

It’s also down from average monthly growth of 123,000 jobs during the same three-month period of 2024, and from 111,000 in the first three months of 2025.<\/p>\n<\/div>\n

\n
\n
\n
\n

More from ETF Strategist:<\/h2>\n
\n

Here’s a look at other stories offering insight on ETFs for investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n

The size of the U.S. labor force has declined for three consecutive months, which hasn’t happened since 2011, Cox wrote.<\/p>\n

“The job market is in a precarious spot after months of slowing consumer spending,” Cox wrote. “The American consumer drives the economy, and the economy ultimately drives the direction of markets,” she added.<\/p>\n

Economists also worry about inflation reigniting as tariffs levied by the Trump administration work their way into higher prices for consumer goods and services.<\/p>\n

There have been some signs of that in recent months, and many economists expect that inflationary pressure to bite harder in coming months.<\/p>\n<\/div>\n

<\/a>‘People are feeling like they’ll be left behind’<\/h2>\n
\n

Despite these headwinds, experts say the economy isn’t in dire shape. The stock market has also continued to march to new highs, with the S&P 500 stock index up about 10% since the start of the year.<\/p>\n

Many of Sun’s clients have shown urgent interest in artificial intelligence and crypto amid lofty returns, versus more bread-and-butter long-term planning, she said.<\/p>\n

Shares in tech giants like Meta