Stock Market Turmoil: 150 Years of History Says This Happens Next
The stock market has been a tumultuous place in recent weeks, with the three major benchmarks taking investors on a roller-coaster ride. The S&P 500 index (SNPINDEX: ^GSPC), the Dow Jones Industrial Average, and the Nasdaq Composite fell -- with the Nasdaq crashing into bear territory -- earlier this month as President Donald Trump set out a plan for tariffs on imports. The concern is tariffs will lift prices for U.S. companies and consumers, weighing on growth.The Trump administration later put the tariff plan on hold for 90 days in order to negotiate with various countries. China remains the exception, with that country facing a 145% tariff from the U.S. And Trump offered makers of electronics products such as smartphones and chips a break in the form of a temporary exemption from import tariffs. This news boosted indexes, helping them rebound from lows, but they still remain down since the start of the year.And with each bit of news regarding tariffs and their expected impact on the economy, indexes have shifted direction. All of this makes it very difficult for investors to determine whether stocks are heading for brighter days or more declines. During times like these, it's important to remember that similar moments have unfolded before, and while the past is no guarantee of what will happen, we can look to them for clues about the future. In fact, 150 years of history says one particular thing happens next.Continue reading
The stock market has been a tumultuous place in recent weeks, with the three major benchmarks taking investors on a roller-coaster ride. The S&P 500 index (SNPINDEX: ^GSPC), the Dow Jones Industrial Average, and the Nasdaq Composite fell -- with the Nasdaq crashing into bear territory -- earlier this month as President Donald Trump set out a plan for tariffs on imports. The concern is tariffs will lift prices for U.S. companies and consumers, weighing on growth.
The Trump administration later put the tariff plan on hold for 90 days in order to negotiate with various countries. China remains the exception, with that country facing a 145% tariff from the U.S. And Trump offered makers of electronics products such as smartphones and chips a break in the form of a temporary exemption from import tariffs. This news boosted indexes, helping them rebound from lows, but they still remain down since the start of the year.
And with each bit of news regarding tariffs and their expected impact on the economy, indexes have shifted direction. All of this makes it very difficult for investors to determine whether stocks are heading for brighter days or more declines. During times like these, it's important to remember that similar moments have unfolded before, and while the past is no guarantee of what will happen, we can look to them for clues about the future. In fact, 150 years of history says one particular thing happens next.
