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Will President-Elect Donald Trump's Plan to Implement Tariffs Cause Stocks to Plunge? Here's What History Tells Us.

The Motley Fool
Summary
Nutrition label

82% Informative

Since Election Day , the iconic Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all ascended to record-closing highs.

Trump 's prior tariffs had a deleterious effect on U.S. equities.

The general purpose of tariffs is to make American -made goods more price-competitive with those being brought in from beyond our borders.

There have only been six instances where the S&P 500's Shiller P/E crested 30 during a bull market rally, including the present.

Each prior occurrence was followed by a 20% to 89% decline in the stock market.

History also strongly favors long-term investors (regardless of who's president).

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84

Informative language

84

Neutral language

33

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formal

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English

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47

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not offensive

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not hateful

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Time-value

medium-lived

External references

13

https://ycharts.com/indices/%5ESPX/chart/https://ycharts.com/indicators/cyclically_adjusted_pe_ratio/chart/https://libertystreeteconomics.newyorkfed.org/2024/12/do-import-tariffs-protect-u-s-firms/https://ycharts.com/indices/^SPXhttps://www.fool.com/author/1813/https://www.fool.com/investing/stock-market/indexes/sp-500/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=1324b5d2-7dd9-4fa1-bad2-4a0587bd38f1https://ycharts.com/indicators/cyclically_adjusted_pe_ratiohttps://www.fool.com/legal/fool-disclosure-policy/https://ycharts.comhttps://www.fool.com/investing/2024/11/06/donald-trump-president-elect-even-bigger-winner/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=1324b5d2-7dd9-4fa1-bad2-4a0587bd38f1https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=1c70ee30-3a9b-4dc4-89d6-2b0ccc18b3a6&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010983%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D16622&utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=1324b5d2-7dd9-4fa1-bad2-4a0587bd38f1https://www.fool.com/investing/2024/12/25/donald-trump-tariffs-stocks-plunge-history-says/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=1324b5d2-7dd9-4fa1-bad2-4a0587bd38f1https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=1c70ee30-3a9b-4dc4-89d6-2b0ccc18b3a6&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010983%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D16622%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DS%2526P%2520500%2520Index&utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=1324b5d2-7dd9-4fa1-bad2-4a0587bd38f1

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