The stock market has hit a record low in recent days, with both the S&P 500 and Nasdaq experiencing their worst quarter since 2022. The main culprit behind this decline is President Trump’s tariffs on imports, which investors fear will weigh on corporate and economic growth.
However, history suggests that market crashes often precede recoveries. In periods of high inflation or recession, the market has not crashed forever. Instead, it has quickly rebounded as the economy improves. For example, after the 2008 financial crisis, the S&P 500 and Nasdaq gained positive momentum just a year later.
Investors who have weathered past downturns can attest to this phenomenon. By choosing quality stocks and committing to them for the long term, they can ride out market crashes and position themselves for potential gains in the future.
In light of this history, investors should consider buying shares of well-established leaders that are trading at discounted levels. They should also reinforce positions in dividend stocks, which will provide passive income during difficult times.
Most importantly, investors should keep a cool head and avoid panic-selling. While today’s market conditions may lead to further declines, history shows us that better times are on the horizon.
Source: https://www.fool.com/investing/2025/04/07/trump-tariff-market-crash-what-happens-next