The S&P 500 Did Something Seen Just 75 Times Since 1990. History Says the Stock Market Will Soar Next.

The S&P 500 (SNPINDEX: ^GSPC) declined 12% in five trading days in early April, erasing more than $6 trillion from the U.S. stock market. The crash was caused by the surprisingly severe tariffs announced by President Trump on April 2, which he dubbed "Liberation Day."Meanwhile, the CBOE Volatility Index (VOLATILITYINDICES: ^VIX), commonly called the VIX, rocketed higher as the stock market tumbled lower. The VIX closed at 52.3 on April 8. That was only the 75th time it closed above 50 since 1990.This type of volatility can unsettle even the most experienced investors, but it comes with a major silver lining: The S&P 500 has always increased during the 12 months following VIX readings above 50. Moreover, the stock market has historically generated monster returns under those circumstances.Continue reading

Apr 24, 2025 - 09:12

The S&P 500 Did Something Seen Just 75 Times Since 1990. History Says the Stock Market Will Soar Next.

The S&P 500 (SNPINDEX: ^GSPC) declined 12% in five trading days in early April, erasing more than $6 trillion from the U.S. stock market. The crash was caused by the surprisingly severe tariffs announced by President Trump on April 2, which he dubbed "Liberation Day."

Meanwhile, the CBOE Volatility Index (VOLATILITYINDICES: ^VIX), commonly called the VIX, rocketed higher as the stock market tumbled lower. The VIX closed at 52.3 on April 8. That was only the 75th time it closed above 50 since 1990.

This type of volatility can unsettle even the most experienced investors, but it comes with a major silver lining: The S&P 500 has always increased during the 12 months following VIX readings above 50. Moreover, the stock market has historically generated monster returns under those circumstances.