How to protect your money when markets get rocky

Amid rising concerns over investment portfolios due to escalating trade tensions and gloomy economic forecasts, a Reuters poll shows the probability of a US recession within the next 12 months has jumped to 45%. President Donald Trump's tariffs have led to worries about inflation, slower growth, and layoffs, creating a 'risk-off' environment where investors are seeking safer assets. Financial experts like Douglas Boneparth emphasize the importance of planning rather than panicking, advising against emotional decisions during market downturns.
Investors are encouraged to remain disciplined and consistent, focusing on long-term strategies rather than reacting to short-term volatility. Building a cash reserve, diversifying portfolios, and rebalancing investments are recommended strategies. Financial planners like Catherine Valega stress the importance of setting financial guardrails and continuing to invest, especially through automated means. While the market outlook is uncertain, maintaining a calm and measured approach can help protect and grow investments over time.
RATING
The article provides practical financial advice tailored to the current economic climate, characterized by trade tensions and recession fears. Its strengths lie in its clarity and relevance, offering timely guidance for individual investors. However, it could benefit from greater source transparency and a broader range of perspectives to enhance its credibility and balance. While the article effectively addresses public interest by focusing on personal finance, its potential to drive significant engagement or controversy is limited. Overall, it serves as a useful resource for readers seeking to navigate financial uncertainty, though it could be strengthened by including more detailed data and diverse viewpoints.
RATING DETAILS
The story presents a generally accurate depiction of the current economic sentiment among investors. It accurately notes the anxiety caused by trade tensions and economic forecasts, which is a widely acknowledged concern. However, the claim about the probability of a US recession increasing to 45% from a Reuters poll requires verification for precision. The article also references President Trump's tariffs as a cause for economic worry, which aligns with broader economic analyses, though specific impacts are not detailed. The advice from financial experts is consistent with standard investment strategies, though it could benefit from more specific data or studies to support the claims.
The article primarily presents the perspective of financial advisors and experts, focusing on strategies for individual investors during economic uncertainty. While it provides practical advice, it lacks a broader range of perspectives, such as those from economists or policymakers who might offer different insights into the economic conditions discussed. The article does not seem to favor any particular viewpoint excessively, but it could be more balanced by including diverse opinions on the impact of tariffs and recession probabilities.
The article is well-structured and uses clear, accessible language to convey its message. The advice on investment strategies is straightforward and easy to follow, with practical tips that are relevant to the audience. The logical flow from identifying the problem to offering solutions helps maintain reader engagement. However, the article could improve clarity by providing more context or definitions for terms like 'risk-off environment' for readers who may not be familiar with financial jargon.
The article cites financial experts like Douglas Boneparth and Catherine Valega, who are credible sources within the financial planning industry. However, it lacks direct references to primary sources such as the Reuters poll or economic data that could substantiate its claims. The reliance on unnamed polls and general economic sentiments without direct citations affects the overall source quality. Including more authoritative sources or data points would enhance the article's credibility.
The article provides a clear narrative on investment strategies but lacks transparency regarding the basis of some claims, such as the specific details of the Reuters poll or the exact impact of tariffs. It does not disclose the methodology behind the recession probability figures or the specific economic forecasts mentioned. Greater transparency in these areas would help readers understand the basis of the claims and the context in which they were made.
Sources
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