Should You Invest as Tariff Uncertainty Lingers? History Shows a Clear Pattern When It Comes to Stock Market Turbulence.

While uncertainty astir these tariffs looms, I'd caution investors from getting excessively caught up successful the day-to-day quality stories. Let's research wherefore the past respective years person been 1 of the astir absorbing periods successful modern fiscal history, and measure what these patterns tin thatch astir investing during times of economical turmoil.

During Donald Trump's archetypal word arsenic president -- betwixt Jan. 20, 2017, and Jan. 20, 2021 -- the S&P 500 (SNPINDEX: ^GSPC) gained 69% portion the Nasdaq Composite soared by 142%.

What's a small ironic astir these eye-popping returns is that they mostly occurred during a clip of comparative chaos. What I mean by that is the superior markets went perfectly parabolic during the second information of Trump's archetypal presidency -- specifically, during the highest days of the COVID-19 pandemic (annotated successful the graph supra by the grey-shaded column).

While galore radical made a batch of wealth during that period, the euphoria fueling the banal marketplace was not capable to get Trump reelected successful the 2020 election.

President Joe Biden succeeded Trump successful the 2020 election, and assumed the White House betwixt Jan. 20, 2021, and Jan. 20, 2025. During this period, the S&P 500 and Nasdaq Composite roseate by 56% and 46%, respectively.

Those returns aren't excessively shabby astatine all. With that said, a bully information of Biden's presidency was plagued with ongoing rhetoric implicit abnormally precocious ostentation and rising involvement rates.

The absorbing happening astir these dynamics is that adjacent though investors enjoyed steadfast banal marketplace returns passim the Biden presidency, they didn't needfully "feel" those gains arsenic uncertainty astir ostentation and borrowing costs took a toll connected economical activity.

As a result, galore voters decided yet again to determination successful a antithetic absorption during the astir caller predetermination cycle. On Nov. 5, Trump was reelected arsenic president -- and my hunch is that galore radical were inspired by the feeling they had erstwhile markets were roaring backmost successful 2020 and 2021.

The absorption successful the superior markets pursuing Trump's triumph successful November sent a wide connection -- investors were excited again. Between Nov. 5, 2024, and Dec. 31, 2024, the S&P 500 gained arsenic overmuch arsenic 5% portion the Nasdaq roseate arsenic precocious arsenic 9%.