Treasury Secretary Scott Bessent recently spilled the beans, stating that regular folks—yes, you and me—have been clutching onto their investments despite all the chaos in the market. According to Bessent, individual investors really believe in President Donald Trump’s tariff strategy. At a press conference with White House press secretary Karoline Leavitt, Bessent emphasized, “Individual investors are hanging in there, while big-time institutional investors are losing their cool… It’s all about that trust in Trump, you know?”
Bessent, a former big shot in the hedge fund world, pointed out that Vanguard, a major money managing powerhouse, revealed that a whopping 97% of Americans haven’t made a single trade in the last 100 days. Crazy, right? This info was sourced from a Washington Post article, by the way.
Now, let’s talk about Trump’s tariff rollercoaster. His decision to slap on some of the highest tariffs in ages caused a massive panic in the stock market, leading to the worst plunge since the pandemic hit back in 2020. The S&P 500 even went into bear market territory for a hot minute, but managed to bounce back a bit. Currently, the benchmark index is sitting at about 10% below its record high from February.
Amidst all the chaos in April, individual investors swooped in like superheroes to snatch up stocks at bargain prices. Meanwhile, hedge funds and pro traders were high-tailing it out of there, while also betting against the market like there’s no tomorrow.
Institutions are freaking out over the impact of these tariffs on consumers and the overall economy. They’re worried that we might be heading straight into a recession. Torsten Slok, the head honcho economist at Apollo, is calling it—get ready for a summer recession as folks start feeling the effects of trade-related shortages on store shelves next month. Ken Griffin, the big cheese at Citadel, is concerned that Trump’s trade war could seriously tarnish the good ol’ U.S. of A.’s reputation and make U.S. Treasury debt a lot less attractive.
Now, I’m not really sure why this matters, but it seems like the little guys are holding strong while the bigwigs are hitting the panic button. Who would’ve thought regular Joes like us would be the ones keeping the ship afloat, right? But hey, that’s just the way the cookie crumbles in the wild world of finance.
Lastly, it looks like we’re in for a bumpy ride ahead. With uncertainties looming over the economy and the trade war heating up, it’s anyone’s guess what the future holds for us investors. One thing’s for sure, though—the rollercoaster isn’t stopping anytime soon. So buckle up, folks, and hold on tight.
