{"id":684,"date":"2025-01-22T20:01:03","date_gmt":"2025-01-22T20:01:03","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/should-investors-worry-about-market-turmoil-under-trump\/"},"modified":"2025-01-22T20:01:03","modified_gmt":"2025-01-22T20:01:03","slug":"should-investors-worry-about-market-turmoil-under-trump","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/should-investors-worry-about-market-turmoil-under-trump\/","title":{"rendered":"Should Investors Worry About Market Turmoil Under Trump?"},"content":{"rendered":"\n<div>\n<p class=\"css-at9mc1 evys1bk0\">Ultimately, the S&amp;P 500 gained 16 percent by the end of that first pandemic year, and soared more than 25 percent in 2021.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Indeed, the difficulty that follows fear-based selling is figuring out when exactly it is \u201csafe\u201d to get back into the water. Most people end up waiting too long, similar to the investors Vanguard studied, and miss out when the market bounces back.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">That can cost investors dearly, even those who eventually return.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Consider three hypothetical retirees with identical $500,000 portfolios, consisting of 60 percent stock funds and 40 percent bonds \u2014 a fairly common allocation for Vanguard retirees heading into 2020.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Let\u2019s say each of them reacted differently to the pandemic plunge. Here\u2019s what their portfolios would have looked like on Oct. 31, 2024, assuming they reinvested all dividends:<\/p>\n<p class=\"css-798hid etfikam0\"><strong class=\"css-8qgvsz ebyp5n10\">Investor 1.<\/strong> She stayed invested throughout the zigs and zags of the pandemic.<\/p>\n<p class=\"css-798hid etfikam0\">Projected portfolio balance: <strong class=\"css-8qgvsz ebyp5n10\">$741,670<\/strong><\/p>\n<p class=\"css-798hid etfikam0\"><strong class=\"css-8qgvsz ebyp5n10\">Investor 2. <\/strong>He panicked and sold on March 16, 2020, one of the peak moments of volatility. He remained in cash, missing out on all gains had he reinvested.<\/p>\n<p class=\"css-798hid etfikam0\">Projected portfolio balance:<strong class=\"css-8qgvsz ebyp5n10\"> $471,514<\/strong><\/p>\n<p class=\"css-798hid etfikam0\"><strong class=\"css-8qgvsz ebyp5n10\">Investor 3.<\/strong> She also panicked, selling entirely to cash at the peak of volatility, but reinvested as the market rebounded in late May.<\/p>\n<p class=\"css-798hid etfikam0\">Projected portfolio balance:<strong class=\"css-8qgvsz ebyp5n10\"> $625,843<\/strong><\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe costs of panicking to cash in 2020 would have been significant \u2014 generating lost wealth well into the six figures,\u201d said Andy Reed, head of investor behavior research in Vanguard\u2019s investment strategy group. He ran the numbers using its <a class=\"css-yywogo\" href=\"https:\/\/advisors.vanguard.com\/financial-planning\/market-hindsight\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">market hindsight tool<\/a>, which lets investors run portfolio simulations, using actual market events, that illustrate what would happen if they were to move to cash or reinvest.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ultimately, the S&amp;P 500 gained 16 percent by the end of that first pandemic year, and soared more than 25 percent in 2021. Indeed, the difficulty that follows fear-based selling is figuring out when exactly it is \u201csafe\u201d to get back into the water. Most people end up waiting too long, similar to the investors [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[374,326,224,376,375],"class_list":["post-684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-investors","tag-market","tag-trump","tag-turmoil","tag-worry"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=684"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/684\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/685"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}