THE TURMOIL THAT reverberated throughout global stock markets from US import tariffs hit home for different Irish shareholders last week when they braced themselves to check their shares.

People who spoke to The Journal shared how they saw their investments of thousands of euros drop by as much as 30-40% as Donald Trump slapped on new taxes and raised others.

Those who summoned the courage to look, anyway.

“I had €21,000 in different shares, mainly in big tech, and they had dropped to €14,500 when I checked,” said Barry, an engineer in his late 30s who took an interest in the stock market during the pandemic.

At one point during the trade shocks, the US stock index suffered its biggest one-day fall since 2020 but markets rebounded as Trump reversed course and the EU suspended its counter-measures.

“Over the past week they’ve regained just about €1,600, so it’s a big change right now to what it was looking like,” Barry added.

“I’m supposed to hold on and wait and see to let them build up, which makes sense for me right now as I don’t have anything major to pay for in the short or medium term. But it would definitely have you wondering about what’s next.”

A survey from the Banking and Payment Federation of Ireland (BPFI) found that 15% of Irish adults own shares in companies, far less than the more than 50% of US citizens, but a number that grows larger when you account for pension funds.

Clients are ‘not happy’

Paul Overy, a qualified financial adviser with Ask About Wealth in Dublin, said he has seen the unease when discussing the issue with clients over the past week. In short, they’re “not happy” about the losses they’re seeing.

“When I asked them what their pension is, they tell me that two months ago it was 90 grand, and now it’s 50 grand – or it was 90 grand and now it’s 75 grand.”

But Overy, who is also a lecturer at the International College Dublin business school, was among those cautioning people to consider holding onto their stocks rather than “panicking” and cashing in out of fear they will plunge further.

“It’s not a loss until you sell,” Overy argued. “Just like it wasn’t a gain when you went from 60 grand to 90 grand, until you sell.”

He cited one client in their late 40s who was nervous about the drop in the value of their pension.

“But with that 48-year-old, he or she is not dipping their hand in the cookie jar for 12 years until their retirement – so it’s the value in 12 years that’s important, not the value today. And you can audibly hear them say ‘Okay, that’s fine.’”

‘It’s not a sprint’

John Lowe, chief executive of Money Doctors, was encouraging people to stick to their long-term investment plans and not panic during market volatility.

“It’s not a sprint, it’s a marathon,” he told The Journal.

“Five years ago we had the Coronavirus which is probably the last big drop and stocks went down 20-30%,” he said.

“People panicked and those who got out and decided ‘right, this is too hot for me’, unless they put their stocks back, they would have lost out and missed the rebound six months later when the stocks came back.”

Lowe added that people should examine the options presented by some insurance companies for managed funds that are able to move shares into “safer, more cautious funds” when the market has another volatile moment.

For those who are thinking of investing in shares over the coming months, Overy said it was best to be wary of further uncertainty.

“Not only there could be turmoil, there will be turmoil,” he said. “It’s because human beings do stupid stuff all the time. You know, whether that’s invasions in Europe or whether that’s tariffs out of the White House, that’s just the nature of the beat.”

“From an investment point of view, if you are not happy that there will be major downturns in this portfolio in the future, then don’t do it. Don’t get on the rollercoaster if it makes you sick.”