From Yahoo Finance: 2025-04-14 08:58:00

On Wednesday, April 9, 2025, the S&P 500 had its third-best day ever, rising 9.5%. This surge followed the Trump administration backing down from tariffs on all countries except China, where tariffs are now at 145%. But the market dropped the next day, with uncertainty about the future.

Massive one-day rallies in the stock market historically signal bearish trends. Top 10 up days for the S&P 500 occurred during bear markets in 1987, 2008, and 2020. These “bear market rallies” often lead to increased volatility and irrational decision-making among investors.

Bear market rallies are triggered by panic in the market, leading to sharp reversals in sentiment. High volatility can result in impulsive trading decisions and frequent portfolio repositioning. During a bear market, increased trading activity often leads to poor choices under stress.

To navigate bear markets, investors are advised to stay the course, avoid frequent trading, and consider dollar-cost averaging into their portfolio. Buying high-quality stocks at discounted prices during market downturns can lead to long-term returns. Consistency is key in achieving profitable decisions in bear markets.

Professional traders may have fixed investment accounts, but individual investors can take advantage of regular cash deposits. Buying quality stocks at a discount during bear markets can lead to significant returns. Staying focused on the long-term and avoiding reactionary trading can help maximize profits during volatile market conditions.



Read more at Yahoo Finance: Here’s What History Says Comes Next.