The sharp drop of stocks that resulted from President Trump's unexpectedly large tariffs sent stocks into a tailspin. The DJIA declined from a December 2024 peak by 16% at the close of trading on April 8. Much of that loss had been recovered by the start of May, however. Is the worst over? Part of the answer lies in whether future bad news has already been discounted. In the case of the 1987 crash, the DJIA fell 36% between

August and October. But the underlying economy was sound, and the averages recovered their loss two years after that crash. In February 2020, the exponential rise in US covid cases caught the U.S. off-guard. The DJIA plunged 28% in a month. By then the lockdown plan had been formulated, and although very costly, at least a policy had been put in place to deal with the crisis. The DJIA fell by -48% between September and mid-November 1929 and began to recover until April. But without a stimulative monetary and fiscal policy, the economy sagged and a banking panic in the fall of 1930 greatly worsened the problem. Ultimately the DJIA would fall 89% by July 1932 falls its Sept 1929 peak. In the case of the 2007-09 recession, concern of subprime mortgages had caused some bumpy DJIA sessions in late July and August 2007, but the market steadied and the DJIA went on to make a high in October. But then Wall Street was rattled again in March when Bear Stearns was about to fail; JP Morgan acquired the company and by Sept 1, the DJIA was only off 21% from its peak. Then on Sept 15, Lehman Brothers failed and the worst financial crisis since the Great Depression occurred in the U.S. By the March bear market trough the DJIA had lost a staggering 54% of its value.