The S&P 500’s Performance Since “Liberation Day” and Its Underperformance Compared to Country ETFs
The S&P 500 index (SPY) experienced a notable rally of 5.7% during the recent trading week. However, it’s essential to note that this growth comes after a 5.4% decline since the index closed on April 2, 2022, which is colloquially known as “Liberation Day.” This day marked the announcement of President Biden’s decision to end the American military involvement in Afghanistan, signaling the end of the longest war in U.S. history.
Comparing SPY’s Performance to Country ETFs
In comparison, the average country ETF has seen a 4% decrease since April 2. This disparity indicates that the S&P 500 has underperformed other international markets since the announcement on Liberation Day.
Asian Economies Bouncing Back After Harsh Tariff Announcements
Two Asian countries, Vietnam (VNAM) and Thailand (THD), were among the hardest hit by the reciprocal tariffs announced on Liberation Day. Since the pause in these tariffs, these countries’ respective ETFs have shown impressive growth, with Vietnam’s VNAM bouncing back 16.7% and Thailand’s THD registering a 14.1% increase.
Implications for Individuals and the World
For individual investors, this trend could indicate potential opportunities in Asian markets, as they have shown resilience and growth following the tariff announcement. However, it’s crucial to remember that investing always carries risks, and thorough research and careful consideration should be given before making any investment decisions.
On a global scale, the underperformance of the S&P 500 compared to other international markets could have far-reaching implications. The U.S. economy’s relative weakness could impact its standing as the world’s largest economy and potentially influence geopolitical relationships and trade agreements.
Conclusion
In summary, the S&P 500’s underperformance since Liberation Day, compared to the average country ETF, is an essential development for investors to monitor. Asian economies like Vietnam and Thailand have shown remarkable resilience and growth after harsh tariff announcements. While this trend could present opportunities for individual investors, it also carries potential implications for the global economy and geopolitical landscape.
It’s essential to remember that investing always involves risks, and thorough research and careful consideration are essential before making any investment decisions. Stay informed and stay adaptable as market conditions continue to evolve.
- S&P 500 (SPY) rallied 5.7% this week but remains down 5.4% since Liberation Day
- Average country ETF is down 4% since 4/2
- Asian countries like Vietnam (VNAM) and Thailand (THD) had harsh tariffs announced on Liberation Day
- VNAM has bounced back 16.7% since the pause
- THD has registered a 14.1% increase since the pause
- Individual investors should consider opportunities in Asian markets but remember the inherent risks
- Global implications could include the U.S.’s economic standing and geopolitical relationships
