Is the Stock Market at Risk of Another Lost Decade? Here's What History Shows.
Stocks may have bounced off their post "Liberation Day" lows, but an unusual level of uncertainty remains for many investors. There's little clarity as to what tariff rates will end up being under the Trump administration, and nearly every day, news reports hint at more changes. The current 145% tax on most imports from China doesn't seem sustainable, but predicting where it settles from here is nearly impossible.There are other signs that investors could be facing more challenges ahead. Consumer sentiment and business sentiment are rapidly weakening. Inflation expectations are now the highest they've been since 1981, with inflation expected to rise to 6.7%, according to a survey from the University of Michigan. The Gross Domestic Product (GDP) report for the first quarter of 2025 came out this week, and it contracted for the first time since early 2022, when the economy was still being heavily affected by the pandemic. Image source: Getty Images.Continue reading
Stocks may have bounced off their post "Liberation Day" lows, but an unusual level of uncertainty remains for many investors. There's little clarity as to what tariff rates will end up being under the Trump administration, and nearly every day, news reports hint at more changes. The current 145% tax on most imports from China doesn't seem sustainable, but predicting where it settles from here is nearly impossible.
There are other signs that investors could be facing more challenges ahead. Consumer sentiment and business sentiment are rapidly weakening. Inflation expectations are now the highest they've been since 1981, with inflation expected to rise to 6.7%, according to a survey from the University of Michigan. The Gross Domestic Product (GDP) report for the first quarter of 2025 came out this week, and it contracted for the first time since early 2022, when the economy was still being heavily affected by the pandemic.
Image source: Getty Images.
