Well, that was a crazy month or so. After a rocky start to the year, the S&P 500 has now fully reversed all its losses for 2025 and is back on the up.¹
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From tech sell-offs and tariff fall-outs to a full rebound, it’s been a challenging 2025 for investors — but as they always do, markets have bounced back.

Let’s unpack what just happened - and what it might mean for your investments going forward.

A recap – how did we get here?

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Earlier in the year, markets got spooked by uncertainty.

U.S.–China trade tensions flared, tariffs were hiked and the S&P 500 dropped over 15% from its record highs. This was driven in part by how reliant many big American companies are on the Asian supply chain.²

Then came a climbdown, with trade representatives from both countries getting around a table in Switzerland, and thrashing out a 90-day tariff truce that cooled things off.³

This breakthrough sent stocks and the dollar rallying on 12 May, giving major U.S. indexes one of their best days of the year.⁴


What did this episode teach us?

While this is good news for investors, the Trump tariffs were a reminder about how world events can rattle markets and how important it is to invest with a cool head.
 

• Markets don’t move in straight lines: Up and downs are a natural part of investing and we could see more volatility later this year. Even with things on the up, the next move of the Trump administration can be hard to predict.
  
  
• Staying invested still wins: Loud headlines can be hard to ignore but if you rode out the dip – nice work, you’re now reaping the benefits. If you watched from the sidelines, don’t worry. The best time to invest was yesterday, but the second-best time is today.

• Try not to react emotionally: These swings are a perfect reminder of why staying invested, keeping calm and focusing on long-term goals is so important. Investors who sold may have locked in losses and missed the recovery.

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Key takeaway:

The Trump tariff turmoil lasted little more than 40 days, but remember that investing isn’t about catching the bottom or finding the perfect moment.

It's about building habits, being consistent, and letting time do its thing – not reacting to news headlines.

Whether you're topping up your portfolio or thinking about getting started, your most important move? Just getting in the market and staying invested.

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May your gains be plentiful,

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Stephen. 

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P.S: Looking for more?:

• Our brand new investing guides: Here
• How to handle market volatility: Here
• Your investing checklist: Here 

Sources: (1) Yahoo Finance (2) BBC (3) The Guardian (4) Reuters

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