SPY

📉 The S&P 500 has experienced a correction, transitioning from early-year gains to potential negative territory, influenced by tariff announcements and commercial war fears.

📊 Historical data shows similar patterns of volatility and recovery, especially during periods of trade tensions, like in 2019.

⚠️ Market volatility is a recurring phenomenon, with the S&P 500 often experiencing significant intraday drops, even in years that end with positive returns.

⏳ Long-term investment significantly reduces the probability of loss, emphasizing the importance of maintaining investments over extended periods.

@Javierlinares:
“From early January to mid-February, the S&P 500 seemed to be going full steam ahead, with gains of up to 5% annually in just those 45 days. Since then, there has been a correction in the American market, leading the index to even trade in negative terms as of now. The market is reacting with considerable fear to the tariffs, the trade war, a possible stagnation, and even the rebound in inflation. We can see how there are many years, like 2020, where the market even corrected at one point by 34%, and yet it ended up practically 20% up. We see how every year there are drops at some point of at least between 5 and 15%, although even then the market ends up correcting and closing the year in green.”

Watch the exact part of the video where Javier talks about the S&P 500 here:

View the video on YouTube.

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