Stock market plunges 10.5% after trump tariffs, historical data suggests long-term gains
From Yahoo Finance: 2025-04-20 15:00:00
The Trump administration’s tariff rates caused a 10.5% plunge in the S&P 500 after “Liberation Day.” This marks the fourth-worst two-day drop in 75 years, leading to uncertainty but historical data suggests long-term gains for investors who buy during market downturns.
However, there are caveats to consider. The market is currently more expensive compared to past crashes, with a higher P/E ratio. Tariffs implemented could also inflate prices, limiting the Federal Reserve’s ability to stimulate the economy. Investors should weigh these factors before making significant investment decisions.
Despite potential risks, history shows that buying during times of uncertainty can lead to significant gains in the long term. Following the strategies of legendary investors like Warren Buffet and Howard Marks, who advocate for buying when others are fearful, could prove beneficial in the current market climate. It’s a time to be cautious but also opportunistic in investing decisions.