Thursday, May 1, 2025

How do I respond to the stock market?

How do I respond to the stock market?/Carlos Pueblo The stock market has crashed right after President Trump comes back to the power. He has posted higher tariffs on every nation in the world which does exporting business with the United States. The stock market is crushed in the scale of the 1929 Grest Depression. It takes a while for me to respond such man made peril. I immediately cashed out 500 shares of an oil stock into my cash reserve; I take a close look at my pension portfolios; and I have decided to cut back my spending. I was not alerted to the Trump's coming back to power. I don't move at all on any of my holding into cash. I thought that U.S. Economy is much more strong than Trump's Presidency. I didn't realize he could bankrupt U.S. Economy single handedness. I am wrong and running scared. Selling the oil stock is my only reasonable choice, I bought it for that price and sold it at the same price while most of my holding of mutual funds and stocks were 25% down. Eventhough I am not working, I do have the social security income, a small amount of an old company's cash payout, a mortgage income from my daughter, and a requirement minimum distribution income which is the account of that cashed oil stock and a high tech stock. I believe that with such cash reserve at hand, I can be survival until 2026. Both of the Social Security Benefits and the Federal Dipository Insurance Plan are the products of the 1929 Depression. My entire life savings and investments are in several mutual funds under professional management that I mean there are funds managers whom we pay them handsome management fees. I don't think that I can do beter than them. I am too old to work again and I must rely on them to make incomes for me. I am still betting on the high technology funds because those are still the strong fields which the U.S. is good at. I am from a very humble backgrounds and it is not difficult for me to go back to the frugality again. I understand the inflation and the diminishing of the U.S. dollars. It won't bother me if I don't spend and I just go to the basic.

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