Live: Trump Won't Rule Out Recession
Stocks have recently fallen, and not by a small amount.
Why? This can be attributed to a number of factors, including...
Concern over tariffs introduced by US President Donald Trump.
General economic concern.
President Trump recently not ruling out the possibility of a recession.
While stocks dropping is something you should pay attention to, it doesn't always mean you should sell everything and store all your cash in a trash bag under your mattress. We'll put a pin in that for now.
But stocks have entered what is called a "correction," which you should know how to deal with.
Learn: Corrections, Dos & Don'ts, and Diversification
A market correction is generally defined as when a major market index (a large group of stocks used to measure the broader stock market, such as the S&P 500) drops in value by over 10%.
These moments can feel scary, but it is a normal part of investing. Historically, markets recover and hit new highs over time.
Here’s what NOT to do when this happens:
❌ Panic-sell (locking in losses on your investments).
❌ Try to time the buying when the stocks are low (extremely difficult to do).
Instead, consider…
✅ Continuing regular contributions.
✅ Revisiting your risk tolerance—are you comfortable with volatility?
✅ Staying the course/evaluating your investment strategy.
One important piece to an investment strategy is diversification.
In investing, diversification is the strategy of varying your investments between different assets types (real estate, crypto, stocks, bonds, etc.), industries (tech, pharma, construction, etc.), and nations to reduce risk if one investment performs poorly.
What does this look like? Instead of having only tech stocks like Amazon, Apple, and Tesla, you spread out your investments (like butter) into bonds, real estate (later on when you can), and stock investing in Costco, Amazon, and L'Oreal for example.
Above is a visual representation of your diversified investment portfolio.
This can be easily done by investing in index funds where your money will be spread across many stocks with one purchase, or you can do so manually by buying multiple different stocks yourself.
Leverage: Yahoo Finance
This is a new section of the newsletter I am testing where I will be introducing tools that I think can make your personal finance processes easier. There are a few things I want to note:
I am not sponsored by any of these platforms, so I have no incentive to sell them to you.
I’ll tell you what I use the tool for, and try to specify any drawbacks the tools may have as well.
I will recommend tools that I know, and likely often use. I will not recommend things I have no experience with.
Because of note 3, I have only used so many financial tools, so I am not sure if I will be able to recommend a new one every newsletter.
Either way, I think these websites, apps, platforms, etc. are extremely useful to me, so I want to share them with you all. If you like this idea, please let me know by responding to this email!
Yahoo Finance: Investing News and Research
A tool I use consistently, often to help craft these newsletters, is Yahoo Finance.
I know you may think that Yahoo is dead. But I’m here to tell you it probably is.
It really probably is I don’t know who uses Yahoo anymore.
That said, Yahoo Finance is an excellent spot to get financial news and research different investments.
I use Yahoo Finance for…
Checking past performance of stocks and other investments.
Doing basic technical analysis of investments (I don’t do this anymore).
Staying up to date with current financial news.
The drawbacks I see to Yahoo Finance are…
The news is accurate but click-batey. It is good to take a step back and realize that they are sometimes dramatic and are trying to get you to read their content.
There are plenty of other platforms that may be simpler/more approachable to evaluate stocks, such as Google Finance.
If you want more info on how I use Yahoo Finance, let me know!
Launch!
Don’t put your money under your mattress. Please don’t.
Use this correction to check your diversification or start diversifying.
Evaluate if you are too concentrated in one sector.
Do you have a mix of stocks, bonds, and other assets?
Are your stocks spread across multiple industries and nations?
Diversification helps smooth the ride and protect your portfolio from big swings when they inevitably happen.
Stick to your plan, stay diversified, and keep investing for the long haul. Your future self will thank you. ;)
—Ben Brosnahan
