One of the more worrying moments in my life last week was seeing the US-based portion of my retirement funds lose most of the gains that have been made after US President Donald Trump tanked his country’s economy, along with most of the world’s, following his “Liberation Day” speech where he announced a host of tariffs as part of his unhinged platform to make America great again.
The funny thing about it is until recently, I have been a very passive investor, checking the performance of my funds invested mostly with retirement in mind, maybe once a quarter or so, just to see how it is doing. It was only when Trump took over this January that I decided to be a little more attentive, thinking that his reentry into the scene would make for some interesting developments that might require adjustments that could maximize gains or minimize potential losses.
In hindsight, I shouldn’t have done that because ignorance is bliss, especially during these difficult times. I was better off sticking to my original plan of just putting the money there and letting it work or keep adding to the fund until it was time to take it out, which according to my timeline should be another 10 years or so.
But because I am closely studying it and monitoring it now, I have been watching in real time with horror how the value of my retirement fund has practically lost all its gains since January. The minor moves that I tried to make because I thought it would be smart to make a move when Trump’s administration had just started, had all bombed in a major way. The way I see it right now, it could take another 4-5 years before the value and performance of my investments can get back to the level it was just 3 months ago. Thanks Trump. Nice one MAGA.
I know that I should just try to ignore this stock market bloodbath, and if I have extra funds and guts take this Trump-given opportunity to buy, since I am supposed to have a long horizon with these funds that I don’t plan to use until retirement age, but seeing so many people’s retirement funds, investments, or calculated gambles getting pissed away by one man’s wild decision making process is jarring and all this volatility makes one wonder if this is the bottom, or just the beginning of the end.
If you come to think of it, Trump has not even been in power for 100 days, and he will be there for 4 years. That’s a lot of uncertainty and crazy decisions that the world will have to deal with. Any upswing will depend on how the unpredictable American leader will run his country, and the way they are burning bridges, turning back on alliances, and ignoring the rules so far increases the fear for the worst while he remains in charge.
Of course, I could have just been better off ignorant of the stock market nosedive and am just panicking now because I have become too invested. Perhaps the past few days could be just a dip and the recovery quick and beautiful, the way Trump says it will be. Anyway, I have not done anything stupid by cashing out yet, and as of now, still determined to keep my money in that market, hoping that the recovery comes and my retirement timeline still lines up. For now, I still subscribe to the strategy that time in the market is better than timing the market.
The funds affected by the way Trump is running his country are the most aggressive portions of my retirement fund. But to be fair, because when the USA sneezes, the rest of the world catches a cold, most other funds that my wife and I have invested in are not doing particularly well here in the Philippines either. Getting in the global market was part of our diversification strategy that had been doing pretty good until very recently. All we can do now is hope for the recovery to be within the timeframe that we have in mind. If we were much younger, this dip/crash and impending recession or depression would be less worrisome, but it is what it is. All we can do is hope for a recovery and that in 10 years, our retirement fund will be in a much better place than these past few days.*
