NEW YORK, NY / March 23, 2025 – The Trump administration’s aggressive tariff policies and the subsequent stock market correction are sparking widespread anxiety among older Americans, who hold the lion’s share of U.S. wealth. With 80% of stocks and equity funds controlled by individuals aged 55 and older, the recent market slump is dealing a heavy psychological and financial blow to retirees and affluent households.
Stocks Sink, Confidence Shattered
The S&P 500 tumbled into correction territory in mid-March, joining the Nasdaq Composite, which has already plunged nearly 11.9% from its December peak. The Dow Jones Industrial Average (DJIA) is down 6.7% from its record close, according to Dow Jones Market Data.
The selloff has spooked investors who grew accustomed to steady market gains in recent years. The market’s two-year bull run, fueled by post-pandemic stimulus and soaring tech stocks, has come to a screeching halt under the weight of:
- Trump’s Tariff War: The president’s March 4 tariffs on Canada and Mexico—along with threats of further levies in April—sent shockwaves through the market, dragging down stocks and consumer confidence.
- Fed Caution: Although the Federal Reserve kept interest rates steady, Chair Jerome Powell warned that inflation linked to tariffs may be “transitory,” offering little comfort to rattled investors.
- White House Apathy: Trump’s dismissal of stock market volatility has only deepened investor unease. Despite previously being dubbed the “most pro-stock-market president,” Trump has shifted focus toward protectionist trade policies rather than market stability.
Older Investors in Panic Mode
For baby boomers and retirees, the market downturn is particularly unsettling. With half of all U.S. consumer spending driven by the top-earning households, any decline in their stock-driven wealth could translate into weaker consumer spending—potentially stalling economic growth.
Jim Keenan, founder of Keenan Private Wealth Management in New York, says his boomer clients are in full-on defensive mode.
“It’s like a deer in the headlights,” Keenan said. “Everyone is nervous watching the news and getting more upset.”
Keenan reports that many of his clients are shifting from growth to preservation, moving assets into bonds and dividend-paying stocks while scaling back on big-ticket spending plans.
Will the Fed Come to the Rescue?
With market volatility escalating, some on Wall Street are eyeing the Federal Reserve for a potential rescue playbook. Strategists at BofA Global declared the “Fed put”—a term for central bank intervention to prop up markets—“alive and well.” They believe the Fed is more focused on growth risks than rising inflation, which could mean future rate cuts or bond-buying programs to stabilize markets.
Trump Hints at Flexibility on Tariffs
In a slight reprieve, Trump signaled on Friday that he might consider “flexibility” on tariffs ahead of the April 2 deadline for further trade actions. The S&P 500 narrowly avoided its fifth consecutive weekly loss, rising 0.5% for the week.
The Bottom Line: Uncertainty Reigns
As wealthy retirees scale back spending, their caution could ripple through the broader economy. The market correction is already dampening consumer confidence, and without a policy shift, Wall Street may continue to face choppy waters.
For now, Trump’s tariff agenda appears to be the administration’s top priority, leaving investors bracing for more volatility and uncertainty in the months ahead.
