The S&P 500's Shiller Price-to-Earnings (P/E) Ratio peaked at 38.89 in December 2024, indicating an expensive market that could be poised for further declines.

April 2025 marked a significant volatility event for the S&P 500, which has occurred only seven times in the past 75 years and has accurately predicted future stock movements 100% of the time.

Historically, when the S&P 500 has declined over 10% within a month and then rebounded over 10% by month-end, it has always been followed by gains one year later, averaging a 22.1% return.

The sharp rise in long-dated Treasury bond yields has raised concerns about increased borrowing costs amidst this economic uncertainty.

On April 2, President Trump announced a global 10% tariff, which heightened investor fears of retaliatory tariffs and inflation, although he later paused tariffs for all but China on April 9.

This announcement coincided with growing concerns over a potential U.S. recession, particularly after the U.S. GDP contracted by 0.3% in the first quarter of 2025, marking the first shrinkage in three years.

These factors, along with a historically expensive stock market and rising Treasury bond yields, contributed to significant volatility in the stock market.

Despite the current uncertainty, historical data suggests that long-term investment in the stock market yields profits, highlighting the importance of patience and a focus on long-term gains.

The S&P 500 logged its fifth-worst two-day decline on April 3 and 4, followed by the largest single-session point increases for major indexes on April 9.