Is a Bear Market Imminent Under President Donald Trump? Statistically Speaking, the Answer Is Clear.
The respective sell-offs in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite may be just getting started.
Following a seemingly unstoppable bull market rally that began in October 2022, Wall Street has given investors a stern warning over the last three weeks that stocks do, in fact, move in both directions. Since Feb. 19, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and growth-centric Nasdaq Composite (NASDAQINDEX: ^IXIC) have respectively declined by 7.3%, 8.9%, and 12%, as of the closing bell on March 12.
This notable move lower in Wall Street's major stock indexes is in decisive contrast to the gains registered during President Donald Trump's first term in office. When Trump's first term as president ended, the Dow Jones, S&P 500, and Nasdaq Composite had gained 57%, 70%, and 142%, respectively.
With stock market volatility and investor emotions peaking, it begs the question: Is a bear market imminent under President Trump? Based solely on statistics and historical correlations, the answer couldn't be clearer.
