The “Trump Slump” started on April 2, 2025, global stock markets crashed amid increased volatility following the introduction of new tariff policies by United States President Donald Trump during his second term.
The 50% decline in 1974 was followed by a rally of 2447% before the next 40% (or greater) decline. The 51% decline of 2000-2002 was followed by a 105% rally before the next 58% decline in 2008. The market has rallied 822% since that time (not including dividends) with no 40% decline as of yet.
Experts attributed the crash primarily to automated trading strategies, particularly program trading techniques like portfolio insurance and index arbitrage, which exacerbated the downward trend of stock prices. These automated systems triggered automatic sell orders, worsening the decline.
What are the BIGGEST Stock Market CRASHES in History?
What is Black Monday 2025?
7 April 2025 - Part of the 2025 stock market crash; the largest declines since the aforementioned March 2020 Black Mondays, which set off many circuit breakers in Asian markets, as a result of tariffs in the second Trump administration.
While the causes of the bubble and subsequent crash are disputed, the precipitating factor for the Financial Crisis of 2007–2008 was the bursting of the United States housing bubble and the subsequent subprime mortgage crisis, which occurred due to a high default rate and resulting foreclosures of mortgage loans, ...
Berkshire Hathaway A shares incorrectly displayed down more than 99%. The halts did not appear to have a notable effect on the value of the major market averages. The issues on Monday are another reminder that the exchanges and data providers that are central to Wall Street are not completely error free.
How long did it take the S&P 500 to recover from the 2008 crash?
The most extreme example of the last 100 years was the crash of the 1930s (which was followed by the Great Depression). This took 25 years to get back to its previous high. The S&P 500 took almost six years to fully recover from the crashes of 2000 (the dot-com bubble) and 2008 (the global financial crisis).
The emotional aspect of trading often leads to irrational decisions like panic selling. When the market moves unfavourably, many traders, especially those who are inexperienced, tend to panic and exit their positions hastily. This panic selling often occurs at the worst possible time, leading to significant losses.
The odds that the economy will slip into a recession are nearly 50-50, and the time of greatest vulnerability will run from late 2025 to early 2026, according to Moody's Analytics chief economist Mark Zandi.
Do you lose all your money if the stock market crashes?
The only people who actually lose money are the ones who sell their investments after a crash. If you stay patient and keep a long-term perspective, your investments will most likely bounce back and regain their value over time.
Several individuals who bet against or “shorted” the market became rich or richer. Percy Rockefeller, William Danforth, and Joseph P. Kennedy made millions shorting stocks at this time. They saw opportunity in what most saw as misfortune.
The S&P 500 lost approximately 50% of its value, but the duration of the bear market was just below average. The bear market was confirmed in June 2008 when the Dow Jones Industrial Average (DJIA) had fallen 20% from its October 11, 2007 high.
Should I pull my money out of the stock market before it crashes?
Staying invested is generally more profitable than trying to outsmart the market. That's because while markets can be unpredictable in the short term, they historically have trended upward over time. In fact, some of the market's biggest gains occurred after sharp declines.
The “lost decade” from January 2000 through December 2009 resulted in disappointing returns for many who were invested in the securities in the S&P 500. An index that had averaged more than 10% annualized returns before 2000 instead delivered less-than-average returns from the start of the decade to the end.
Discover how much of one stock you might hold—and still stay on track to reach your long-term goals. A widely accepted rule of thumb claims that a properly diversified portfolio must have no more than 10 to 20 percent of total investment assets in a particular stock.
To put this another way, the assumption that 2008 could not happen again is wrong. It could, because the next global financial crisis might well be precipitated by overvalued bank balance sheets, as was the case in 2008, even if the precise reasons for the overvaluation might change.
Ray Dalio, who predicted the 2008 crisis, is warning about America's $36 trillion debt, calling it the country's "biggest problem." He compares current conditions to the 1930s and criticizes Trump's policies, likening them to those of hard-right regimes.
