Lately, economic news can feel like whiplash with the rising cost of living thanks to everything from tariffs to government shutdowns. 2025 in general has put the average American’s wallet to the test. During economic uncertainty, it’s natural to feel confused about how you should maintain your investments.
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With all of that in mind, you may be wondering how you should manage your investments. Eric Kelley, chief investment officer at UMB Bank, cut through the confusion to offer a handful of wise tips to manage your investments when the economy is challenging.
Whatever you do when economic signs get confusing, don’t panic and make drastic financial moves based on said panic. In the 10 months alone since President Trump has been in office, the stock market has dipped, recovered, dipped again and recovered again. So, if you act on panic, it creates a vicious cycle that rarely ends well.
Uncertainty, Kelley said, “makes everyone uncomfortable.” But that doesn’t mean you should make a financial move in response. Usually, it’s best to stay the course.
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Likewise, the best way to respond to confusing economic signals and weather short-term ups and downs is to have a solid long-term plan, Kelley said. You should know your risk tolerance, your asset allocation and “anchor back” to that when uncertainty and volatility increase.
“The folks that don’t have really solid long-term financial plans are the people that get nervous and they sell low and buy high and things don’t end up very well sometimes,” he said.
Additionally, you should reevaluate your plan at the end of every year, ideally with a financial advisor.
If you’re not clear on what a “solid financial plan” entails, Kelley suggested it’s knowing what your short- and long-term goals are, such as retirement, paying for kids’ college, buying a home and so on. Then, you need to ask some questions.
“What is your cash flow that you need now to live and how can you fund your long-term goals through savings? What’s the maximum amount you can save? How do I match up my risk profile to my needs and my tolerance?”
If you have a plan and can follow it, especially if you aren’t immediately retiring or making another big life change, “then you will be able to weather the storms without getting emotional. And that’s the most important thing anybody can do,” Kelley said.
