Should You Buy Stocks After 3 Straight Months of Market Declines? History Offers a Clear Answer
Heading into 2025, it looked like this was going to be another year of strong gains for the market, but that has changed since President Donald Trump first announced heavy tariffs on major U.S. trading partners, and then made his "Liberation Day" announcements that imposed further taxes on imports from almost everywhere. Although it has been making a slow and steady recovery from its recent lows, the S&P 500 (SNPINDEX: ^GSPC) is still down more than 4% year to date, and more than 8% from its peak.Investors may be concerned about investing now for a whole bunch of reasons, like tying up their money in a dropping market or the near-term potential for stock gains when tariffs could seriously eat into corporate earnings.There's no way to know how long this period of volatility will last. But as with the market having just exited its third month of declines in a row, history offers a clear answer to the question of whether to invest right now.Continue reading
Heading into 2025, it looked like this was going to be another year of strong gains for the market, but that has changed since President Donald Trump first announced heavy tariffs on major U.S. trading partners, and then made his "Liberation Day" announcements that imposed further taxes on imports from almost everywhere. Although it has been making a slow and steady recovery from its recent lows, the S&P 500 (SNPINDEX: ^GSPC) is still down more than 4% year to date, and more than 8% from its peak.
Investors may be concerned about investing now for a whole bunch of reasons, like tying up their money in a dropping market or the near-term potential for stock gains when tariffs could seriously eat into corporate earnings.
There's no way to know how long this period of volatility will last. But as with the market having just exited its third month of declines in a row, history offers a clear answer to the question of whether to invest right now.
