The S&P 500 descends to the following correction territory President TrumpTariff declarations.
What happened: Equity prices fell in response to the 10% prices of President Trump on all American business partners announced the day before.
This decision aroused concerns about a potential trade war and increased inflation, which could both orient the United States to an economic slowdown. Consequently, the S&P 500 has now dropped more than 11% compared to its February summit, indicating its entry into the correction territory.
Renowned investor Warren BuffettIn his 2017 letter to the shareholders, recommended a 19th century poem as a tool to maintain composure during stock market slowdowns.
“It simply is not to say to what extent the actions can fall in a short period.” But if a major drop occurs, he continued, “hug these lines” from the classic poem by Rudyard Kipling “If”, wrote Buffett.
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Buffett fired Rudyard Kipling’s poem in 1895, “If you can keep your head when everything, you lose their own. If you can wait and not be tired while waiting. If you can think and do not make thoughts your goal. If you can trust yourself when all men doubt you. Yours is the earth and everything that is there.”
“No one can tell you when they occur. The light can go from green to red at any time without stopping yellow,” wrote Buffett in 2017.
Why it matters: Buffett perceives slowdowns as “extraordinary opportunities” and encourages investors to respect their long -term plans and continue to invest, whether temporary or extended.
He emphasizes that slowdowns are frequently succeeded by the market, taking up its upward trend and advises investors to seize these opportunities.
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