The stock market has been experiencing a tumultuous period, with the three major benchmarks – S&P 500 index, Dow Jones Industrial Average, and Nasdaq Composite – facing investor uncertainty. The concerns revolve around tariffs, which could lead to price increases for US companies and consumers, weighing on growth.
However, President Trump’s administration put the tariff plan on hold for 90 days to negotiate with various countries. China is an exception, with a 145% tariff from the US. A temporary exemption for electronics product makers has boosted indexes, but they remain down since the start of the year.
Market downturns and crashes have occurred throughout history, including the 1929 crash, Black Monday in 1987, and recessions. Despite these challenges, the market has consistently recovered over the long term. According to Morningstar research, a dollar invested in the US stock index in the 1870s would be worth over $28,000 today.
Analyzing historical data suggests that the market is becoming more resilient, with faster recoveries from past recession periods. While not officially in a recession yet, economists have raised concerns about weakening consumer sentiment and potential price increases due to import tariffs.
The key takeaway for investors is to maintain a long-term view during stock market turmoil. Historically, the market has recovered after downturns, making it a great time to take advantage of bargains on quality stocks. It’s also essential to hold onto existing stocks in strong companies that are likely to manage current headwinds.
The Motley Fool’s Stock Advisor analyst team has identified 10 best stocks for investors to buy now, with none being the S&P 500 Index. Considering these top-performing stocks may offer better returns than investing in the S&P 500 Index alone.
Source: https://finance.yahoo.com/news/stock-market-turmoil-150-years-081200233.html