The stock market on Friday morning immediately tumbled nearly 3%, or 1,100 points, after China announced retaliatory tariffs of 34% in response to President Donald Trump's tariff announcement earlier this week.

Analysts say this shift is a natural response to the new tariffs, though some are viewing it as an opportunity. One expert highlighted that the market had been on a steady climb over the long term, but the Dow Jones has lost 10% since December.

“The market was trading at an all-time high, and the price of stocks relative to how much money the companies were or are earning, are expected to earn, is also pretty close to an all-time high," said Ethan Gilbert, a partner at Rialto Wealth Management. "So, some pullback in the market is healthy. I think the great thing about the stock market is it’s unbiased and it’s immediate.”

Despite the drop, many investors consider this as a reminder of why diversification is key to a balanced portfolio. One example from Thursday's market activity showed that even with the downturn, a diversified portfolio held up better.

“The market was down about 4%. A portfolio that’s 60% stocks, 40% bonds has some international stocks that were down only about 1.5%," said Gilbert. "So yesterday was a good example of why it pays to diversify your investments. These days are the days that you earn that return and so buy, hold in the long run. You’re going to make out well.”

That's easier said than done as so many people see losses on paper they were banking on for retirement. Gilbert adds that a Fidelity study shows that their accounts that have performed the best are ones that owners forgot existed. He adds acting like your own day trader is never a good idea.

While the news of tariffs has caused some volatility, experts like Gilbert encourage investors to pursue a diversified strategy.