Market Review and Trends
Was I Wrong to Doubt the Rally? A Surprising Force is Calming Markets
By The Dividend Uncle  •  May 4, 2025
Hey fellow investors, in my previous video — the one right after the market started bouncing back from the tariff bombshell — I said I wasn’t chasing the rally. That video came just days after Trump’s tariff announcement on April 4, which triggered a sharp sell-off in global markets. The S&P 500 dropped over 10%, and the Nasdaq nearly 20%. Some calm has returned to the market since then, especially after the U.S. administration walked back some of its tougher tariff positions. In fact, just this week, the S&P 500 and the Nasdaq have recovered all their losses from the initial shock! Now, that’s a huge recovery in a short time. And to be honest — I didn’t expect the rebound to be this strong, this fast. But credit where it’s due — the way the bond market reacted, and how the administration toned things down in response, gave me more confidence than I expected. It’s not a full U-turn in my view, but I’m definitely less cautious now. Still, I know many of you are wondering — is this a red flag? A potential trap in the making — where the market lures investors back in with a feel-good rally, only to pull the rug when the real economic damage starts showing up? Or is everything really back to normal… or even better, the start of another strong leg up for the markets? So in today’s video, let’s break down what the latest numbers actually say, what’s really driving the rebound, and whether the recent optimism is justified. Most importantly, I’ll share The Dividend Uncle’s take — am I still on the sidelines, or am I getting ready to lean back in? Even if you don’t invest in the US, remember that the performance of the US markets often sets the tone for the rest of the world, including Singapore. As usual, let me remind you that this video is for informational purposes only and not financial advice. Always do your own research and consult a licensed financial adviser before making any investment decisions. I own some of the shares discussed, but what works for me might not work for you. Alright, let’s get started!...
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By The Dividend Uncle
Welcome to The Dividend Uncle - Your Guide to Smart Investing in Singapore! Build wealth, secure your financial future, and achieve your dream lifestyle through dividend investing.
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