President Donald Trump has sent US shares into a spiral (Image: Getty)
Investors celebrated when he won the US presidential election in November, as they expected him to light a rocket under the stock market.
Instead, he’s torched it.
Markets hate uncertainty, but that’s what Trump is giving them. In spades.
Threats to slap brutal trade tariffs on allies and enemies alike have triggered panic among investors.
Wall Street was booming for a decade as it smashed every market in the world. Thanks to Trump, it’s now plunging.
The benchmark S&P 500 index is down 8.5% in the last month. Some analysts reckon it could crash 20% or more.
It’s a huge worry for British pension and Stocks and Shares ISA investors. They’ve poured billions into US tech stocks like Amazon, Apple, Microsoft and Nvidia.
Electric car maker Tesla, run by Trump’s sidekick , has crashed 35% this year.
British retirees who have left their pension invested in the market via also have less money to play with.
So what can we do?
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It’s hard right now, but don’t panic.
Selling in the middle of a crash usually backfires. It mean you crystallise what are still just paper losses.
Bouts of volatility like today’s are the price investors pay for the superior long-term returns from stocks and shares.
Markets can rebound as fast as they crashed in the first place. Often faster.
By pulling money out of shares today, you will miss the eventual recovery. Whenever it comes.
This may come as a shock: the US aside, most stock markets are actually up this year.
The FTSE 100 index climbed 4% in 2025 as investors hope the UK escapes the worst of Trump’s tariffs.
Incredibly, European stock markets have jumped 10%.
Trump has woken Europe out of its complacency and forced Germany to spend big on defence to counter . Making tanks instead of cars will give Europe’s industrial powerhouse a real boost.
Even Chinese shares are booming. They’re up 20% this year.
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Investors reckon China can shrug off tariff threats, and strike new deals with the rest of the world, as the US proves itself an unreliable partner.
There’s no guarantee this will continue of course.
If Trump’s tariffs hit business profits in Europe and China, markets could crash there too.
Savers who played safe with Cash ISAs will be happy. Savings rates have actually climbed, because of Trump.
His tariffs and tax cuts will drive up inflation, which makes it harder for central bankers to lower .
Annuity rates are rising too. They’re at a 15-year high. Pensioners who fancy locking into a lifetime guaranteed income might consider buying one today.
Gold is another big winner. The safe haven precious metal has soared 35% in the last year. It’s nearing an all-time high of $3,000 an ounce.
You can invest in gold through a Stocks and Shares ISA, by purchasing an exchange traded fund such as iShares Physical Gold, which tracks the price.
The gold price can be volatile though. It might fall sharply if things calm down. Although there’s a little sign of that at the moment.
To survive Trump, diversify across a balanced spread of shares, bonds, cash, gold and possibly some property.
Then grit your teeth and wait for the Trump terror to pass. It will, given time. Investing is a long-term game. Patience and strong nerves are essential.