United States President Donald Trump’s announced import tariffs are causing a lot of unrest among private investors. Patrick Verwijmeren, Professor of Corporate Finance at Erasmus School of Economics, recently gave his expertise on what to do, and especially what not to do.
Investors who see fall after fall should not panic immediately, according to Verwijmeren. 'Often, people want to sell their shares right away. But that is usually not advisable. Usually, though, the advice is to stay put if you get shaved. Again, the advice is not to start selling your shares en masse.' However, the situation may be different for people trading for the short term. 'Then, you start making predictions. You start asking yourself: do I think it will really be a trade war, or won’t it be that bad? Then, you can pick a direction.'
Private investors, however, are more likely to hold shares to profit in the long term. 'When that is the case, you have to sit still or even buy additional shares now,' says Verwijmeren. 'When you invest, especially for the somewhat longer term, ultimately the whole goal is to sell it higher than what you buy it for. You try to buy shares at a low price and sell at a high price,' he explains.
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You can read the full article from RTV Rijnmond, 7 April 2025, here.
