Market Reactions in Trump’s First 100 Days
In the early days of President Trump’s administration, the stock market has felt quite the jolt. The S&P 500 index experienced an approximate 8% drop during his first 100 days, marking the worst performance for this period since Gerald Ford’s presidency back in 1974. This downturn was largely triggered by unexpected tariffs from Trump that initially shocked investors. It wasn’t until he announced a 90-day suspension on these tariffs that the market began to recover, albeit slowly. As worries of a potential recession grow, it’s becoming clear that the uncertainty surrounding tariffs might be lingering longer than expected.
Staying Calm Amidst Market Fluctuations
Investing feels much easier when the market is consistently rising, doesn’t it? But now, with all this turbulence, it’s really a test of patience and resilience for investors. Trump’s efforts to reshape global trade and bring high-paying manufacturing jobs back to America—while negotiating better deals—has left many feeling uneasy. It’s a massive shift in decades-long trade policies happening almost overnight.
I get why investors might be feeling panicked right now. We’re entering another time of uncertainty where, yes, things genuinely might feel irreversibly changed. Just think back to the Great Recession in 2008 or even the COVID-19 pandemic—it felt as if the economy was just… halted. Many thought the market would never bounce back. And yet, historically, it always manages to find a way to regain its footing.
According to historical data, long-term investors tend to fare well. For example, between 1936 and 2024, the U.S. stock market has never shown negative returns over a two-decade period. Volatility has also been more common lately. BlackRock’s analysis indicates that even with market drops of around 15% in any given year, investors saw positive returns in 75% of those years. So, staying the course could really pay off.
If you haven’t already sold off your investments, it’s worth remembering that you haven’t truly lost anything yet. Short-term trading, as many experts suggest, is generally not a strong strategy. Research from Schroders suggests that a brief investment period could lead to significant losses when adjusted for inflation.
Interestingly enough, the longer you hold onto your investments, the less likely you are to see losses. If you look at a five-year investment horizon, your chances of losing money decrease dramatically, and over a ten-year period, the risk drops to just 13%.
Assessment of Your Investment Situation
Everyone is at different stages in their investment journey. Some might feel bold and can afford to wait things out, while others need quicker access to their funds. If you’re feeling the pressure and need to safeguard your portfolio’s value, consider diversifying into safer assets like gold, short-term bonds, or CDs. It might be a good idea to discuss this with a financial advisor too; they can provide more tailored advice.
Yet, the data is pretty clear: if you’re able to wait several years, your investments likely will not only be secure but could also appreciate in value.
