U.S. President Trump is four months into his second term, and his tariff plans continue to have businesses, and their investors feeling the impact. Inflation concerns are resurfacing and people are also talking about another recession. 

If you're already retired or planning to be soon, it is natural to wonder how this affects your portfolio and your income plan.

Let’s put some perspective around it.

 

Tariffs Are Stirring Inflation Fears

Dave Popowich summed it up this way, “The market is concerned about these tariffs and some of Trump’s policies being inflationary. So inflation has reared its ugly head again.”
 

That fear is not just about price tags. It affects how investors view future interest rates, business costs, and profit margins. That has made many people leery about investing in general.

 

Good News Is Bad News Again

The most recent employment data from both Canada and the U.S. was better than expected. More people are working. Wages are under control. That sounds like a strong economy, right?

 

Not so fast.

 

“This is the time where good news became bad news for the market,” said Faisal Karmali. "More people working means more spending, which can drive inflation. That shifts expectations around interest rates and fuels uncertainty."
 

It is a reminder that markets do not always move with logic. They move on expectations.

 

Quality Companies Still Win

Despite the headlines, the core principles of successful investing have not changed. Companies that can maintain pricing power and protect their profit margins are better positioned to weather volatility.

 

When talking about the cost of tariffs, Faisal says investors need to think deeper. “Are the companies you’re looking at investing in able to pass on those prices to their customers? Because not all companies are that fortunate.”

 

This is where strategy matters. The companies that hold up well during economic stress are often those that are misunderstood or mispriced during volatile periods and that can create opportunities for investors.

 

Take a Step Back

In a world full of daily headlines and policy shifts, perspective is everything.

 

Dave offers a simple but powerful reminder: “Take a breath. Forget about what happened in today’s market or this week’s market. Whatever your retirement is, it is 30 years.”

 

Instead of reacting to the noise, use this time to reassess. Do you have the right structure? Is your portfolio built to withstand inflationary pressures and policy changes? Are you still aligned with your long-term goals?

 

If the answer is yes, then stay the course. If not, now is the time to adjust with intention, not emotion.

 

Tariffs and economic policy shifts are not going away. But they are not a reason to abandon your plan. The right strategy can manage volatility and take advantage of it. This is a time for discipline and not panic.