The performance of the broad market during the first 100 days of Trump is the worst for any administration in more than 50 years.
Strong losses have given way to a recovery, but the main indices are still to date.
Rates, trade negotiations, and concerns about a recession or even are in a focus during the next 100 days of Trump.
President Donald Trump promised to shake things once he took office and the boy did. Trump imposed rates on the merchandise of most countries to try to transform decades of globalization that believes that it has made world trade unfair to the United States
The scope of the rates in the initial announcement of April 2 sent shares that fell and both S&P 500 and Nasdaq composite The indices entered the Bear market territory that month. Actions were quickly bouncing once Trump announced a 90 -day pause on rates for most countries, so the administration could negotiate trade agreements.
Where to invest $ 1,000 right now? Our analyst team just revealed what they think are the 10 best stocks to buy right now. Continue »
Even with the rebound and a nine -day winning streak from May 2, the S&P 500 still achieved its worst performance in the first 100 days of the President since 1974, falling around 8%. It has been a roller coaster for investors during the first months of Trump’s second term, but what can they expect for the next 100 days?
The Trump administration has 24 days at the 90 -day fare pause, based on this writing. Although the administration has suggested commercial conversations with major commercial partners such as India and Japan, nothing is official. In addition, tensions with China have increased. Trump raised rates In many assets of the second largest economy in the world up to 145%accumulated. In the meantime, China hit the right, giving an import to the United States with 125% of accumulated rates in return, and the country’s leadership has not shown retining signs.
However, the media have recently reported that Chinese officials are evaluating the possibility of starting trade conversations with the United States after senior North -American officials, “through relevant parts several times,” said a spokesman for China’s Secretary of Commerce in a statement. However, the statement also said that the United States must suppress all unilateral rates if they do not want to “compromise further mutual trust”.
Reaching agreements with major commercial partners, including China, will be absolutely primary to maintaining the solid foot market market. Many companies have warned of the consequences of what could happen if Trump reboot their high rates. The fall could mean higher prices and layoffs, while many strategies on the market were expected to have imminent recession. All eyes will be in these commercial negotiations, which will probably keep investors on the toes for the next 100 days, as the markets continue to swing in the form of news headlines.
Official photo of Joyce N. Boghosian’s White House.
Even with the 90 -day break, the possibility of a recession this year has increased as economic data continue to return and forward. First quarter of the United States Domestic Gross Domestic Product (GDP) reduced 0.3%Although many economists have suggested that the data could be inclined by companies that rush to move forward with the rates, which led to an increase in imports. Controlling the fears of the recession, the April job report surprised the advantage and unemployment remained at 4.2%, suggesting that the labor market could be better in a better place than some believed.
However, if the North -American GDP is reduced again, the economy would be in a technical recession. Economic data have also begun to show some cracks in consumption. The rates add another layer of uncertainty to the macro prospects. The Federal Reserve is happy to wait and see what happens because it is concerned that the rates can increase consumer prices.
The FED does not want consumer prices to increase while economic growth slows down and unemployment increases. These conditions would hinder the FED to achieve its double mandate of full employment and prices stability. This scenario could lead to a starting point, an even worse result, as the FED cannot simply reduce interest rates to stimulate growth without the risk of reigning inflation and hurting the labor market.
All these different factors marked the stage for more volatility. Despite the recent securities winning streak, the United States economy has a needed needle, and no one can say with certainty how the Trump’s tariff saga will end.
Given this, investors must maintain a long -term perspective. Trying to increase short -term wins in this environment is especially dangerous. Historical data show that you can keep your money invested longer, better will be your chance of gaining positive yields. Keep calm in the midst of chaos and you know that a patient’s approach should still gain -in the end.
Before buying shares at the S&P 500 index, consider this:
It Motley Fool Stock Exchange Advisor The analyst team just identified what they think are the 10 best stocks For investors to buy now … and the S&P 500 index was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Think about whenNetflixMade this list on December 17, 2004 … if you invested $ 1,000 at the time of our recommendation,would you have 623,685 $!* Or when NvidiaMade this list on April 15, 2005 … if you invested $ 1,000 at the time of our recommendation,You would have 701,781 $!*
Now it’s worth notingValue AdvisorThe total average profitability is906%: a market crushing performance compared to164%For the S&P 500. Do not miss the most recent list of 10 Top, available when you joinValue Advisor.
Bram Berkowitz It has no position in any of the stocks mentioned. The Motley Fool has no position in any of the aforementioned stocks. The mold’s fool has a Outreach policy.
