If Donald Trump’s Trade War Triggers a Stock Market Crash, History Says This Is the First Thing Investors Should Do Over the weekend, trade talks between U.S. and Canadian negotiators collapsed.
President Donald Trump immediately slapped 50% tariffs on a wide range of Canadian products, including Canadian whiskey and hockey sticks
Canadian Prime Minister Mark Carney said that Canada would match Trump’s tariffs “dollar for dollar.” In response, Trump further escalated the trade war by doubling tariffs on imported automobiles and auto parts from Canada to 50%. Unsurprisingly, the S&P 500 (SNPINDEX: ^GSPC) opened lower on Monday. The trade war comes at a fragile time for the market: More investors are bearish than bullish, according to data from the American Association of Individual Investors.
If the trade war continues to escalate, it could easily trigger a market downturn or even a major crash. But if that happens, how should stock market investors react? Well, history shows that during a downturn, there’s one thing investors should do to succeed over the long term.