Retirement Investors Should Be Wary of the Volatile ‘Marie Antoinette’ Market
As the new year begins, retirement investors face challenges in a stock market marked by sharp ups and downs. Financial writer Brett Arends recently described this situation as a “Marie Antoinette” market, drawing on the story of the French queen whose name symbolizes disconnect from everyday struggles.
In April last year, President Trump’s announcement of new tariffs triggered steep market drops. The president labeled investors who panicked and sold off their holdings as “weak” and “stupid.” Similarly, former congresswoman Marjorie Taylor Greene called such individuals “losers” and “failures.” Meanwhile, Treasury Secretary Scott Bessent suggested that retirement investors should not worry about daily market swings, even when the Dow Jones Industrial Average fell by 4,000 points within days.
These remarks may resonate with wealthy individuals like Trump, Bessent, and Greene, all possessing substantial fortunes. For the very rich, market volatility can be an advantage because it offers opportunities to buy stocks at lower prices. Yet, most ordinary investors do not share this luxury of financial flexibility.
Samantha Prince, a law professor at Penn State Dickinson, highlighted how volatility actually harms typical retirement investors. Many rely on their 401(k) accounts not only to grow savings but also as a financial safety net. When the market experiences sharp declines, investors often sell to avoid further losses, sometimes tapping into their funds for emergencies. Such behavior is neither irrational nor a sign of failure; it reflects genuine concerns about losing money they may soon need.
Past financial crises have shown that during turbulent times, retirement funds can shrink sharply, putting future income at risk. For many, a volatile stock market means delayed plans and reduced security.
Investment expert Peter Bernstein once recommended maintaining a balanced portfolio of 60% stocks and 40% bonds. This mix helps reduce risk while providing growth opportunities. Today, low-cost global funds make it easier for investors to diversify beyond U.S. markets. Last year, world stock and bond funds outperformed many domestic-only options, underscoring the value of broad investment strategies.
Investors should remember that while some public figures may downplay market volatility, the reality for most retirement savers is quite different. The market environment demands caution, balance, and careful planning rather than bold risk-taking.
About the Author
Brett Arends is a seasoned financial journalist with a history of covering markets, economics, and personal finance. He has received awards from the Society of American Business Editors and Writers and has worked as a consultant and Chartered Financial Consultant. His recent book, Storm Proof Your Money, offers guidance for investors navigating uncertain times.
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