According to a recent study by Investopedia, stock market turbulence in April and concerns revolving around the current administration's tariff policies are leading to a decline in investors' faith in capital markets. Despite the uneasy atmosphere, the majority of investors are still holding onto their stakes.
The poll conducted between April 12 to 15, 2025 found that 73% of participants are at least "somewhat worried" about the recent stock dump, whereas 44% expressed considerable concern. This has resulted in an unprecedented amount of investor anxiety regarding the recent market volatility, the highest since 2021. More than half of individual investors admitted a drop in their trust in the stock market under the current administration due to unfixed tariff policies and a sharp amendment across capital markets.
For Investopedia readers, Inflation is a prime concern, especially considering its connection with the global tariffs imposed by the White House and upcoming tariffs on semiconductors and copper. The escalating tariff battle between the U.S. and China is another paramount issue. Moreover, there is a shared concern over a possible recession, potential international financial crisis, and bear market due to an impending trade war.
Regardless of readers’ worries, major changes to their portfolio amid these fluctuations are not a common measure. Only a small fraction, 17%, have shifted money out of the stock market into cash, money market funds, or CDs. Besides, 58% used the downturn to their advantage, supported by the fact that 32% indicated usage of dollar-cost averaging in the market or individual stocks.
In the form of a silver lining, 30% of investors stuck to their favorite stocks, notwithstanding their plunge into bear market territory. VandaTrack data shows significant dip-buying flows by retail investors post-April 2nd, constituting net purchases of about $3 billion, the highest daily total since its inception in 2014.
Bank of America data further indicated that the clients were net buyers of $8 billion worth of stock amidst the initial tariff announcements, a record since the 2008 financial crisis. Therefore, despite dwindling confidence, U.S. stocks still appear to be a reliable investment for the next five years for most Investopedia readers. They hope the stock market and businesses will eventually adjust to new policies, allowing profits and shareholder rewards to flourish. However, as the drumbeat for a possible recession grows louder, substantiated by warnings from prominent CEOs like Jamie Dimon of JPMorgan Chase and Larry Fink of Blackrock, only time will tell how accurate these predictions are.