April Angst: A Reminder from the Market, Timing Rarely Pays

Let’s talk about April 2025.

It was the kind of month that gives market watchers whiplash and reminds long-term investors why patience and maybe antacids are needed at times. On April 2nd, President Trump declared “Liberation Day,” unveiling a sweeping package of tariffs: 10% on all imports, with even higher rates on Chinese and European goods. The market reacted with a sharp decline.

In a matter of hours, the Dow dropped more than 1,600 points. The S&P 500 lost over 3% in a single session. By April 10th, the S&P was down almost 15% from its March highs. Consumer sentiment plummeted to near-historic lows, with the University of Michigan’s index hitting 50.8—the second lowest since they started keeping track in 1952.

By mid-May, the market had shrugged off its April tantrum. The S&P 500 not only clawed back its losses but turned positive for the year.

What changed?  On April 9th, the White House paused additional tariffs, and that was enough to turn sentiment—and prices—around.  If you sold in fear in early April, you likely locked in losses and missed the rebound.

What’s the takeaway? Timing the market may feel smart in the moment, but it rarely pays off.  Stay invested. Stay diversified.