Here's One Number Every Investor Should Remember During Market Downturns

The S&P 500 (SNPINDEX: ^GSPC) and the Dow Jones Industrial Average (DJINDICES: ^DJI) sank earlier this month -- and the Nasdaq Composite (NASDAQINDEX: ^IXIC) even slipped into a bear market -- as one particular thing weighed on investors' minds. And that's President Donald Trump's plan to impose tariffs on imports. The concern is these duties will hurt U.S. companies that import parts and finished goods, increasing their costs or pressuring sales growth if they pass higher costs on to the consumer.Across industries, U.S. companies rely on imports and bring across the border everything from fruit to textiles to electronics. Technology companies are particularly dependent on imports, and production abroad is a key part of their cost structure. A shift to production in the U.S. would require time and significant investment, and could hurt earnings. As a result, investors fled many of these stocks following Trump's tariff announcements. But then Trump walked back some tariffs, at least temporarily.Stocks continue to shift from losses to gains amid ongoing uncertainty, and the three major benchmarks each have posted a loss since the start of the year. But before worrying too much about your portfolio's performance right now, it's important to take a look at one particular statistic. Let's check out the number every investor should remember during market downturns.Continue reading

Apr 16, 2025 - 09:54

Here's One Number Every Investor Should Remember During Market Downturns

The S&P 500 (SNPINDEX: ^GSPC) and the Dow Jones Industrial Average (DJINDICES: ^DJI) sank earlier this month -- and the Nasdaq Composite (NASDAQINDEX: ^IXIC) even slipped into a bear market -- as one particular thing weighed on investors' minds. And that's President Donald Trump's plan to impose tariffs on imports. The concern is these duties will hurt U.S. companies that import parts and finished goods, increasing their costs or pressuring sales growth if they pass higher costs on to the consumer.

Across industries, U.S. companies rely on imports and bring across the border everything from fruit to textiles to electronics. Technology companies are particularly dependent on imports, and production abroad is a key part of their cost structure. A shift to production in the U.S. would require time and significant investment, and could hurt earnings. As a result, investors fled many of these stocks following Trump's tariff announcements. But then Trump walked back some tariffs, at least temporarily.

Stocks continue to shift from losses to gains amid ongoing uncertainty, and the three major benchmarks each have posted a loss since the start of the year. But before worrying too much about your portfolio's performance right now, it's important to take a look at one particular statistic. Let's check out the number every investor should remember during market downturns.