Despite Dow Sinking 1,700 Pts., No Need For Investors To Panic: Expert

SYOSSET, NY — Stock markets collapsed on Thursday in response to President Trump's tariff announcement 24 hours earlier.

The Dow Jones dropped nearly 1,700 points, or 4 percent. The S&P 500 lost 4.8 percent, while the Nasdaq fell by 6 percent.

Despite the "bleeding" on Wall Street, there's no need for investors to hit the panic button.

"There are always going to be events that occur that impact the economy," Jason Kass, Chief Investment Advisor at Syosset-based Legacy Edge Advisors, said. "This type of volatility is not new."

Although Kass said there is no way of predicting if Thursday's sell-off was a bottoming out for the markets, he's confident "over the long term markets will continue to climb higher."

Trump said "reciprocal tariffs" are being arranged to promote domestic manufacturing. However, it could still lead to an increase for Long Islanders to pay for many of their necessities, such as food and clothing.

"It remains to be seen how long the tariffs are in place," Kass told Patch.

The financial advisor said another uncertainty is how the tariffs will impact corporate earnings. Kass, who oversees clients' portfolios daily, identifies when to tweak to the long-term plan.

"It's disconcerting to watch the volatility that exists in the marketplace, but our clients have been through this before. They understand it," he said.

Kass believes Wall Street's roller-coaster ride will feature more dips when the earnings reports are released starting next Friday.

"The bottom line is the market is going to be laser focused on what companies say about their outlook for earnings, and the expectation is clearly that the earnings outlook is not going to be terribly great, especially for companies impacted by the tariffs," Kass said.

Each household has its own factors to decide whether it's time to exit the stock market, particularly how close are they to retirement. For those who are long-term oriented, "we're not suggesting folks cash out," Kass said. "But it does have to come back to: 'What's their ultimate plan? What's their ultimate tolerance for risk?'"