Max123
Well-Known Member
From Feb 17 to April 4 (today) S&P500 has gone from $6,129 to $5,074 (-17.2%). Essentially all gains since May 2024 have been clawed back.
The market dropped in 2 stages. About 2 weeks ago there was a big drop based on increasingly aggressive action towards Canada & Mexico, plus anticipation of more global tariffs on April 2. The market priced in a discount, but included odds that the tariff would include loophole or trump would back down. The losses over the last 2 days reflect that everything is much worse than expected. A lot of people are going to be digesting the news over the weekend to see if it warrants another big drop on Monday. Tough to predict. Trump is trying to remake the global economy on his terms. No compromises, not partners, no phasing. Is the US economy so large that it can effectively dictate terms to the world - or did he essentially blow everything up? I guess we'll see.
For some context: when Covid lockdowns were announced at the start of 2020, the market lost 30% but recovery was astonishingly fast and anyone that stayed in the market was laughing 6 months later. Back in 2008 the market lost over 40% but took 4 years to recover.
To keep this 'on topic' - I filled up 2.5 weeks ago in Vancouver at $1.72. Last week gas was in the $1.92 range. Since the carbon tax was dropped metro Van gas prices have 'dropped' to $1.80 range.
