Getty/Rebecca Zisser via Business Insider

The recent escalation of Trump's trade war caused a significant downturn in the stock market and raised concerns over a possible recession.

During times of uncertainty and fear, it is crucial not to make hasty decisions based on panic.

Financial planners shared advice with Business Insider on how individuals can prepare for a potential economic downturn.

The stock market experienced a drastic sell-off, prompting predictions of a looming recession by prominent forecasters. The market volatility stems from uncertainties surrounding President Donald Trump's tariffs and government workforce reductions.

The Nasdaq 100 entered bear market territory, marking a 20% decline since mid-February, while the S&P 500 fell by approximately 13%.

Speculations are mounting about the US economy entering a period of stagnation, characterized by low growth and high inflation.

Given the grim outlook on the market and the economy, individuals are seeking guidance on how to navigate these challenges.

Financial experts emphasize the importance of staying calm and avoiding impulsive decisions. Gina Bolvin from Bolvin Wealth Management Group highlights the significance of maintaining a diversified portfolio and taking advantage of lower asset prices for long-term investors.

Lisa Featherngill, the national director of wealth planning at Comerica Wealth Management, suggests allocating more resources to secure investments like safe US Treasury bills to shield against market volatility.

It is advised not to hastily sell off investments during a market downturn, especially if they are intended for long-term goals like retirement, as historical trends show the stock market generally rises over time.

Additionally, it is recommended to review your budget and identify areas where expenses can be reduced in case of a job loss.