First-time investor lost $10,000 in S&P 500, advised to wait for recovery, potential for recession.

From Yahoo Finance: 2025-04-06 15:09:00

A first-time investor threw $100,000 in S&P 500 in February, lost close to $10,000 due to market drop. Adviser advises to wait it out, recovery time uncertain. Market officially in correction territory, potential for bear market. Trump announces tariffs on ‘liberation day’, sparking trade war fears. Investor reminded market is long-term, can recover depending on economic backdrop. Volatility remains high, uncertainty reflected in consumer sentiment survey. Some see trade war as positive, others concerned about market crash like 1929. Analysts calculate it took five to 10 years for stocks to recover after the Great Depression, with lessons learned from 1929 and 2008 financial crashes showing the importance of diversification. Economists predict a 40% chance of recession in 2025 due to proposed tariffs, with Goldman Sachs raising the risk to 35% over the next 12 months. First-time investors are advised not to panic during market turmoil, as the market will fluctuate over time. It’s important to focus on long-term goals and not check investments daily. A model seeks advice from financial adviser on when to invest, but receives vague guidance on timing.



Read more at Yahoo Finance: I invested $100,000 in the S&P 500 and lost $10,000. How long will it take to recover?