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How some investors protect their money in the midst of stock market misery

    After the DOT-Com bubble burst in the early 2000s, Lars Staack decided to play safely and to invest his pension savings in S&P 500 index funds, which are diversified and bear a lower risk than owning individual shares.

    It was a strategy that brought him to peace of mind for more than two decades – until President Trump was elected in November. While he assessed Mr Trump's comments to support major rates, Mr Staack, 62, who retired two years ago, became increasingly uncomfortable about the savings he intended to use for the rest of his retirement.

    Those nerves about how Mr Trump's economic policy could influence the stock market led him to sell his index funds in January, which moved them in bond and treasury funds, which are seen as safe ports in times of volatility. About a third of his savings are still in stock. The Daily Swings last week, including the worst single day of the market in months, led him to move even more from his assets to safer bonds, he said.

    “I rumbles over and try to find out what the best way will be to retain my pension savings from a volatile economy and of the upcoming inflation,” said Mr Staack.

    Many financial advisers repeat their usual advice during moments of fear: do nothing and stay on course, assuming that your financial plan is diversified and tailored to your goals. But the tumultuous trade rounds have people like Mr. Staack shocked, who immediately need his investments. The way he sees it, are no longer safe for people in the vicinity of or retired – people who want to use their assets in the near future and do not have the luxury of time to wait until the market reverses the course.

    “What Trump and Musk have done is unprecedented, so it seems that nothing is safe anymore,” said Mr Staack. He lives in Poway, California, outside of San Diego, and was a Republican voter until 2016, when he started voting for Democrats.

    In recent weeks, Wall Street has become increasingly pessimistic about whip policy from Washington. By Thursday, the S&P 500 index 10.1 percent were demolished from a peak that he had reached less than a month earlier, a sale that was fed by the fear of investors that trade wars and massive dismissals from federal employees could cause an economic delay. The S&P 500 correction underlined how the two-year bullmarkt no longer has steam in the early days of the Trump administration.

    Policy and politics have been the most important motivation for customers, according to financial advisers. But not everyone takes action. Advisors at some of the largest asset management companies even said that their customers were largely with their existing financial plans.

    Most of the approximately seven million investors on the Vanguard brokerage platform have remained 'disciplined', in accordance with their behavior during the market for market overall in the past, said James Martielli, head of investment and commercial services of Vanguard. On Monday, when Wall Street suffered his steepest decline of the year, only 2.5 percent of Vanguard's customers placed transactions, and most of those transactions would buy shares instead of selling them, Mr Martielli said.

    “Most customers are a bit dazed at the moment, but still relatively comfortable where they are and where things are going,” said Mark Mirsberger, the Chief Executive of Dana Investment Advisors, who manages around $ 8.5 billion for institutions and private individuals.

    In conversations with customers, it is often pensioners and those who go after retirement, who pay the best attention to the stock market and expressing nervousness, said Rob Williams, the director of financial planning and asset management at Charles Schwab. The question, he said, is how they respond.

    For people who are getting closer to retirement, “taking some risk off the table” is logical, but when politics becomes a factor in decisions that seems to be more happening, Mr. Williams said, he urges customers to adhere to their plans and “not respond emotionally.”

    Siegfried Lodwig has been in his retirement for more than ten years, and the recent volatility has not changed his mind to keep about half of his savings on the stock market, managed by a financial service provider. He said he trusted that the market would bounce back, as always.

    Yet Mr. Lodwig, 80, said that he intended to leave his estate at Amherst College, where he received a scholarship years ago. He said he was worried about how much would remain in the school if the market continued to fall in the short term.

    Andy Smith, the executive director of financial planning at Edelman Financial Engines, warns his customers not to respond to news heads about the tickles of Wall Street. Those with diversified portfolios and sufficient cash at hand for their short -term needs can calm their nerves with more ease, he said.

    “In times of volatility, everyone becomes uncomfortable,” says Heather Knight, a national brokerage coach at Fidelity Investments. “Stay the course – that is the best way to withstand some of those periods of volatility.”

    But for some Americans – especially those who expect them to have access to their savings in the near future – the current economic unrest feels different from market dips that they have experienced in the past, causing them to reconsider their investments.

    Praisely McNamara, a single mother whose 16-year-old son is a junior in high school, decided in February to withdraw half of her 401 (K), the maximum amount she could pay, even though they had to pay thousands of tax penalties. In the service of health care, it still contributes to a Vanguard index fund. But with mortgage and tuition payments on the Horizon, the economic instability encouraged by Mr. Trump's policy was enough for her to feel that she needed cash.

    If someone without a stock of savings, Mrs. McNamara, of Newington, Conn., Said the uncertainty about trade wars and the prospects for the American labor market her decision.

    “This is definitely the first time I felt in any way as if I am not safe in what I was told, is the most safe way to prepare for retirement,” said Mrs. McNamara, 40, who voted for former vice president Kamala Harris.

    The volatility has even rattled Americans who do not expect to use their savings in the near future.

    Alison Greenlaw, 43, is still a few decades away from retirement. A few years ago she and her husband bought their house in Bloomfield, Conn. (Mrs. Greenlaw has Mrs. McNamara through a community organization.) Until three weeks ago, her 401 (K) was in a vanguard date pension fund, which had a pre-mixed mix of shares and other interests based on the assumption that she would retire around 2045.

    But when the economic worries started to crawl to the stock market in February, she decided to move all its 401 (K) savings to a Vanguard Money Market Fund, which has investments with a lower risk such as the government supported.

    “I know I will not earn money there, but I am not crazy as everyone whose 401 (k) loses money every day,” said Mrs. Greenlaw. “I feel happy that I did what I did,” she added, pointing to the tariff-induced fluctuations of the market last week.

    Mrs. Greenlaw tried to make a well -considered decision by talking to people who work in Finance and whose opinions they respect. Many of them advised her not to do anything. But she said she didn't feel comfortable to follow the traditional wait -and -see approach. She said she felt that the level of uncertainty in the United States was now 'existential'.

    On Tuesday, Stephen Dinan, 55, whose children are 5 and 7 years old, moved their 529 university savings from US shares and stock index funds to bonds and an International Aquities Index Fund. He also moved his 401 (K), together with his wife, to tires.

    Mr. Dinan's unpredictable and aggressive approach to Mr. Dinan about instability on the stock market on the policy. A Democratic voter, he said he hoped to bring his savings back to shares when the economic prospects were left, or when there was a change in the administration along the line.

    Financial experts are “focused on things that move in the game while it is played,” he said. “But they are not planning if the board game itself is taken from the bottom.”