Market indexes drop due to tariffs, warning of recession, but history shows market resilience

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

Major stock indexes have plummeted due to President Trump’s tariff announcements, pushing the Nasdaq into a bear market. Federal Reserve Chair Jerome Powell warns of inflation and potential economic slowdown. J.P. Morgan predicts a 60% chance of recession by 2025 post-tariff announcement. Despite the uncertainty, history shows that the stock market has endured every downturn, rewarding long-term investors. Time is a key asset during volatility, with bear markets lasting around 9.5 months. Investors should stay in the market, as good times tend to outlast the bad.

The market’s future is uncertain, but quick recoveries like the post-COVID surge show the importance of staying invested. Market corrections offer buying opportunities, with Warren Buffett advising to invest during tough times. While the market is volatile, continuing to invest can lead to long-term gains. JPMorgan Chase is an advertising partner of Motley Fool Money. Katie Brockman of The Motley Fool discusses one key piece of advice for investors in the current stock market climate. While she has no position in the stocks mentioned, The Motley Fool does have positions in and recommends JPMorgan Chase. The article emphasizes the importance of being cautious and strategic when navigating the market, providing valuable insights for all investors. This advice can help individuals make informed decisions and potentially minimize risks in their investment portfolios. It serves as a reminder to stay informed and proactive in managing finances during uncertain times.



Read more at Yahoo Finance: If I Could Tell All Investors 1 Thing About the Stock Market Right Now, It Would Be This