St. Louis, MO (April 28, 2025) Constant talk of tariffs, fluctuating interest rates, stock market dips, and a volatile economy might have people worried about their current and future investments. However, Darren Wright, Chief Investment Officer with First Mid Wealth Management, is offering tips to help ease worries on what people should do with their money during a stressful time in the United States economy.
Wright said while tariffs and stock market downturns sound alarming, the country has been through situations like this before and the markets have always recovered. He pointed to eras such as World War II, the Great Depression, the dot-com bubble, the 2008 recession, and the COVID-19 pandemic. With over 30 years of investment experience, Wright has seen several spikes and dips.
“At a high level, today’s economic volatility isn’t different from any other downturn in history,” Wright said. “We’re currently seeing a sharp downturn driven by uncertainty, with tariff news shifting constantly. However, when the situation stabilizes, markets typically bounce back. History has shown that even during periods of economic struggle, the U.S. economy has consistently recovered over time. Patience is often rewarded when it comes to long-term investing. The best approach is to stay invested and remain focused on your long-term goals. That said, if you anticipate needing access to your money within five years, investing in stocks may not be the right strategy – regardless of current market performance.”
Wright noted that economic headlines can often cause concern, especially during periods of heightened volatility. However, he advises against making impulsive decisions or withdrawing investments in response to short-term market fluctuations.
“Timing the market is extremely difficult. Some of the market’s strongest days often follow its weakest, so pulling money out during downturns can significantly diminish long-term average returns,” Wright said. “In effect, investors may be penalizing themselves by trying to time the market. I believe the U.S. will work toward negotiations to ease the current tariff pressures. If that doesn’t occur, the risk of a recession could increase, and the Federal Reserve may respond by cutting interest rates. That said, I remain confident in the resilience of the U.S. economy – it has recovered time and again. For those with available cash, current conditions may present an attractive opportunity to invest in equities, which are more reasonably valued. Diversification remains key, and while equities are compelling, maintaining a balanced portfolio that includes other asset classes like bonds is always a sound approach.”
Wright said he hasn’t received many questions from First Mid customers who currently have money invested. The First Mid Wealth Management team completes risk assessments and educates their customers about market volatility at the beginning of their relationship, making them prepared for periods like now. If people really want to err on the side of caution, Wright said a Certificate of Deposit (CD) is a safe way to build money. Interest rates on CDs tend to be around 4% in the current market.
The information provided is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. The opinions expressed are those of First Mid Wealth Management and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Diversification and asset allocation does not ensure a profit or protect against a loss.
Certificates of Deposit (CDs) are insured by the FDIC and offer a fixed rate of return. In contrast, the return and principal value of investment securities fluctuate with changes in market conditions. Please note that CDs typically have a minimum purchase amount and may incur early withdrawal penalties. Additionally, there is a risk that the market could outpace the return offered by a CD, potentially resulting in lower overall earnings. Please consult with your financial advisor for more information.
Securities are offered through Raymond James Financial Services, Inc., member FINRA / SIPC, an independent broker/dealer, and are not insured by FDIC or any other bank insurance or government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risks including the possible loss of principal.
First Mid Bank & Trust and First Mid Wealth Management are not registered broker/dealers and are independent of Raymond James Financial Services. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.
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About First Mid Bancshares, Inc.: First Mid Bancshares, Inc. is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, and First Mid Wealth Management Company. First Mid is a $7.5 billion community-focused organization that provides financial services including banking, insurance, wealth management, brokerage, and ag services through a network of locations in Illinois, Missouri, Texas, and Wisconsin, and a loan production office in Indiana. Together, our First Mid team takes great pride in providing solutions and services to our customers and communities and has done so since 1865. This year, we proudly celebrate our 160th anniversary, marking a long history of dedication and service. More information about the Company is available on our website at www.firstmid.com. Our stock is traded in The NASDAQ Stock Market LLC under the ticker symbol “FMBH”. Member FDIC | Equal Housing Lender.
Investments and Insurance Products: Not a Deposit | Not Guaranteed by the Bank or its Affiliates | Not FDIC Insured | Not Insured by Any Federal Government Agency | May Go Down in Value.