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The U.S. stock market has continued to experience significant declines, with the Dow Jones Industrial Average dropping 890 points (2.1%) to begin the week and closing at 41,912.

The S&P 500 and Nasdaq Composite also fell 2.7% and 4% this week, respectively. The downturn has raised concerns among Black investors, a group historically challenged by wealth accumulation and market participation.

“When the ‘check engine’ light is on in America, the car is on the side of the road for Black America,” Antjuan Seawright, a strategist, said. “We always feel the pain more than other constituencies.”

Financial advisors recommend that Black investors maintain a cautious approach during this period of volatility. According to a report by T. Rowe Price, many Black/African American investors seek guidance on financial topics and are interested in having a financial “coach” to help manage their financial health. 

“Two out of three (67%) Black/African Americans want to know as much as possible about financial topics,” the report states.  “Sixty-two percent would like a financial ‘coach’ to help manage their financial health.”

Experts have also stressed the importance of building an emergency fund covering six to 12 months of expenses, which can provide financial stability during job loss or economic downturns.  Many noted that effective money management may also be achieved by evaluating and modifying budgets to differentiate between necessary and non-essential spending. 

For career stability, it is also recommended to improve skills to stay competitive in the labor market. 

Financial burden during recessions may be avoided by making debt repayment a priority, particularly for high-interest debt like credit cards. 

Giving debt repayment priority—especially for high-interest debt like credit cards—helps to avoid financial difficulty in recessionary times, experts decided. 

The looming threat of a government shutdown is compounding economic uncertainty. The has expressed concern that a shutdown could deepen racial and economic disparities and inflict long-lasting harm on the U.S. economy. The loss of income for federal workers would create hardships for Black employees, many of whom are still working to overcome generations of systemic barriers to economic opportunity.

Government closures have traditionally caused financial hardship for workers, delayed government payments, stopped contracts, and economic upheaval. Already grappling with less generational wealth, many Black homes would be particularly susceptible to the financial upheaval a shutdown may cause. 

The situation is particularly concerning for Black business owners who rely on federal contracts and loans, as delays in government operations could disrupt their cash flow.

The 2020 Ariel-Schwab Black Investor Survey revealed that only 55% of Black Americans reported stock market investments, compared to 71% of white Americans. Experts said the disparity results in middle-class Black Americans having less money saved for retirement and less wealth to pass on to future generations. 

“Black Americans are already behind the eight ball, and it is disheartening to see that at current savings and investing rates, the wealth gap will continue to expand, endangering our futures and leaving our families exposed,” Mellody Hobson, co-CEO and president of , noted in a report from that organization.

Financial experts opined that the current economic landscape demands vigilance and strategic planning. 

With markets declining and uncertainty surrounding government operations, Black investors and families are being urged to strengthen their financial positions. 

“We are resilient people, and so we have proven time and time again … we will fight, and we’ll get creative in our fight,” Seawright determined. “We’re gonna have to use all those tactics and strategies in order to not just thrive for the next four years but survive.”