Amid a dramatic downturn in the stock market earlier this month, prompted by sweeping tariff announcements, investor sentiment remained surprisingly resilient.
Data released by major investment firms suggests that while trading activity spiked, the vast majority of retail investors refrained from panic-selling and instead stayed committed to their long-term strategies.
The turbulence between April 3 and 9 offered a rare real-time case study of investor behavior under stress.
Vanguard, Schwab, and BlackRock each reported a similar pattern: a market in distress met by a largely composed investor base, as mentioned in a report by USA Today.
By April 3, the Dow Jones Industrial Average had fallen nearly 1,700 points. The S&P 500 and Nasdaq recorded their worst losses since 2020. The situation worsened by April 4 after China retaliated with tariffs of its own.
Despite the unsettling headlines and sharp declines, investor behavior particularly among self-directed clients remained calm.
Vanguard’s internal data indicated that only 8.4% of its investors made trades during the volatile period. Even among this small subset, most traded only once during the week, and buyers outnumbered sellers five to one.
James Martielli, head of investment and trading services at Vanguard, observed, “The vast majority of our self-directed investors stayed the course. We saw adherence to long-term plans, not reactionary moves”, as quoted in a report by USA Today.
“There was no wave of selling. People were looking to buy,” said Alex Coffey, Schwab’s senior trading strategist. Popular purchases included blue-chip tech stocks such as Nvidia, Amazon, Apple, and Tesla, as well as exchange-traded funds (ETFs)—an apparent effort to manage risk amid volatility.
Kristy Akullian of BlackRock noted a similar sentiment: “Clients weren’t asking, ‘What should I sell?’ but rather ‘What should I buy?’”
BlackRock hosted online guidance sessions, reinforcing long-term principles and discouraging emotional decision-making.
Data released by major investment firms suggests that while trading activity spiked, the vast majority of retail investors refrained from panic-selling and instead stayed committed to their long-term strategies.
The turbulence between April 3 and 9 offered a rare real-time case study of investor behavior under stress.
Vanguard, Schwab, and BlackRock each reported a similar pattern: a market in distress met by a largely composed investor base, as mentioned in a report by USA Today.
Panic in the Market, Calm in the Response
On April 2, U.S. President Donald Trump announced broad-based tariffs affecting global trade. This triggered a cascade of market reactions.By April 3, the Dow Jones Industrial Average had fallen nearly 1,700 points. The S&P 500 and Nasdaq recorded their worst losses since 2020. The situation worsened by April 4 after China retaliated with tariffs of its own.
Despite the unsettling headlines and sharp declines, investor behavior particularly among self-directed clients remained calm.
Vanguard’s internal data indicated that only 8.4% of its investors made trades during the volatile period. Even among this small subset, most traded only once during the week, and buyers outnumbered sellers five to one.
James Martielli, head of investment and trading services at Vanguard, observed, “The vast majority of our self-directed investors stayed the course. We saw adherence to long-term plans, not reactionary moves”, as quoted in a report by USA Today.
Schwab and BlackRock Echo Similar Trends
Charles Schwab, another major retail investment firm, also recorded high trading activity on April 3. However, according to Patrick Means, vice president at the firm’s Dallas branch, the mood was more proactive than panic-driven.“There was no wave of selling. People were looking to buy,” said Alex Coffey, Schwab’s senior trading strategist. Popular purchases included blue-chip tech stocks such as Nvidia, Amazon, Apple, and Tesla, as well as exchange-traded funds (ETFs)—an apparent effort to manage risk amid volatility.
Kristy Akullian of BlackRock noted a similar sentiment: “Clients weren’t asking, ‘What should I sell?’ but rather ‘What should I buy?’”
BlackRock hosted online guidance sessions, reinforcing long-term principles and discouraging emotional decision-making.
Investment Wisdom Amid Uncertainty
Experts emphasized time-tested principles for navigating a distressed stock market:- Avoid timing the market: Investors often miss the best rebound days by trying to sell before a fall and buy back at the bottom. For instance, after days of steep losses, markets surged on April 9 when Trump paused his tariff drive.
- Stick to the plan: Historical data supports long-term investing. Since 1966, average bear markets have lasted about 15 months, compared to nearly six years for bull markets.
- Buy when prices dip: The April turmoil created buying opportunities, especially for those favoring index funds or low-volatility investment options.
