Amid tariff tumult, investors are confronting a long-standing duality pertaining to financial markets. That’s the short-term functioning of risk assets balanced against advice that investing for the long term often delivers strong results.
It’s a scenario on the minds of plenty of investors. That includes those engaged with ETFs such as the Invesco QQQ Trust (QQQ ) and the Invesco NASDAQ 100 ETF (QQQM ). Both have incurred their fair share of tariff-related punishment. Indeed, elevated volatility coupled with tumbling equity prices make it difficult for investors to gain clarity and realize things will eventually get better. However, market history confirms dramatic declines are often followed by buying opportunities.
In other words, it can pay to remember the old market advice of being greedy while others are fearful. Investors looking to act on that advice can split the difference and mitigate some of the recent turbulence with ETFs such as the Invesco QQQ Low Volatility ETF (QQLV). That fund is the reduced volatility counterpart to QQQ and QQQM.
Forget Market Timing
When markets decline, it’s always easy to apply the 20/20 capabilities of hindsight and selling before those drops was advisable. However, market timing is incredibly difficult — sentiment that applies to ETFs like QQQ, QQQM, and QQLV. With that in mind, some experts argue that remaining invested is the best strategy for patient market participants.
“Savvy investors understand that volatility is part of the price you pay for superior long-term returns,” noted deVere Group CEO Nigel Green. “Those who stay invested and act strategically during times like these are consistently the ones who reap the biggest rewards.”
Green also points out that when markets start shaking off the effects of U.S. trade tariffs, the emphasis will be on diversification, durability. and quality traits — bells answered by the Invesco ETFs. Additionally, there’s no denying that plenty of QQQ/QQQM member firms have been hurt by tariff implementation. These firms still possess attractive fundamentals — something that could be prized when normalcy returns to financial markets.
“Investors should be focusing on companies with strong fundamentals, global reach, and the ability to withstand pricing pressures,” added Green.
The deVere Group also mentioned the risks of holding cash. That may seem like a good strategy today with risk assets sliding. But it’s risky beyond the short term because inflation punishes cash, further diminishing the allure of market timing.
“Inflation relentlessly erodes the real value of money, and missing the market’s sharpest rebound days can have devastating effects on long-term portfolio performance,” concluded Green.
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