Weekly Recap: Rollercoaster Week in Markets
Tariff Turmoil – A Timeline
This week was a rollercoaster driven by tariff headlines:
April 4th – Markets dropped sharply after the announcement of new tariffs caught investors off guard.
April 9th – We saw a rebound as news came in that the tariffs were on pause.
April 10th – Just as things settled, the Trump trade war with china revived bear market fears. If it felt like whiplash, you’re not alone.
What Now? Stick to Your Strategy
Market volatility like this is unsettling, but history shows that staying the course pays off. Let’s look at some numbers:
After the 2008 Global Financial Crisis, the S&P 500 dropped over 50%, but within five years it had more than doubled.
During the COVID crash in March 2020, the market fell over 30% in just a few weeks. But by August 2020 — less than six months later — it had fully recovered and kept climbing.
Even during short-term dips, like the trade war tensions in 2018, markets rebounded and finished the year following with double-digit gains.
The takeaway? Markets recover. Sometimes quickly, sometimes gradually — but panicking rarely pays.
Final Thought
Short-term headlines can cause big moves, but they don’t define long-term success. Keep focused on your plan, your time horizon, and the bigger picture.
An interesting chart for some context:
Historically, when the VIX index—a key gauge of market volatility—has exceeded 40, the S&P 500 has risen 18 out of 20 times over the following 90 days, delivering an average return of 12.5%. The only major exception was during the 2008 financial crisis.
If you want to chat about your strategy or just make sense of the noise, you know where to find us.