Editor’s note: “How to Build Wealth in a Volatile Stock Market” was previously published in March 2025 with the title, “Beyond the Ups and Downs: Building Wealth in a Volatile Stock Market.” It has since been updated to include the most relevant information available.
The stock market has been on quite the roller coaster ride since Donald Trump was inaugurated as the 47th President of the United States.
For about a month, stocks were flat. But it turns out that that was the calm before the storm.
With the threat of hefty tariffs looming large, investors feared that President Trump would ignite a global trade war and began selling stocks in droves. From mid-February to mid-March, the S&P 500 dropped 10% in 20 days.
And, of course, upon the rollout of his “Liberation Day” tariffs, Trump did indeed start a global trade war on April 2. This sparked a 10% market crash in just two days – its fifth-worst two-day crash ever.
But just as fast as stocks crashed, they recovered.
When Trump issued a 90-day pause on tariffs just one week after they were announced, the S&P rallied 9.5% in a single day. Then, stocks rallied 13% in 17 days – including the market’s best nine-day win streak in 100 years – as Trump issued exemption after exemption on various tariffs.
This has been arguably the most volatile and violent stock market ever. And given that Trump has been the trigger – and that he will be in the White House for the next four years – investors are naturally asking themselves:
Is this intense volatility Wall Street’s ‘new normal’?
A Bumpy Ride Higher: Why We Expect Stock Market Uncertainty to Continue
Don’t get me wrong. I think stocks are going higher over the next few years.
We’re somewhere in the middle of the AI Boom. Tech booms like these tend to last five to six years or longer. Just look at the Dot Com Boom, which started in 1995 and lasted through 1999 – five years of strong gains. The Nasdaq Composite rose about 582% during that time, while the S&P nearly tripled.
This AI Boom started in 2023. I think we have another two to three years of exceptional growth left in AI stocks. And that growth should drive the whole market higher.
However… I don’t think it’ll be a smooth ride higher…
Largely because of U.S. President Donald Trump, who promises to change a lot of things.
He wants to renegotiate trade deals and restructure global trade, rethink America’s global military presence, and cut federal spending. He wants to reduce taxes, expand America’s borders, and reshore manufacturing activity, among other things.
Clearly, he aims to change a lot.
Now, I won’t offer an argument as to whether these proposed changes are good, bad, or neutral.
But I will state the obvious: It’s a lot of change. And change is uncomfortable – especially for investors…
Because change equals uncertainty. That doesn’t mean this policy shakeup won’t push stocks higher in the long term. It may.
It simply means that, along the way, stocks will continue to be volatile – just like they’ve been over the past few months.
Stock Market Volatility by the Numbers: Record-Breaking Swings Under Trump
Since Trump was inaugurated earlier this year, we’ve seen:
- One of the fastest 10% drops
- Following the announcement of the “Liberation Day” tariffs on April 2, the S&P sharply declined, dropping over 12.1% in the subsequent four sessions.
- One of the worst two-day crashes
- On April 3-4, the market suffered a 10.5% setback, marking the fourth-worst two-day stretch since 1950.
- One of the best single-day rallies
- Following President Trump’s announcement of a 90-day pause on recently implemented tariffs, the S&P surged 9.5% on April 9, marking its strongest one-day performance since October 2008.
- One of the best win streaks
- On May 2, the S&P locked in its ninth straight day of gains – the longest winning streak in more than 20 years – rising roughly 10% over that stretch
- One of the highest readings for the volatility index
- The CBOE Volatility Index (VIX), often referred to as the market’s “fear gauge,” nearly doubled over six months, reaching a reading of 27.86.
This has been a three-month stretch for the record books.
If you think things will “mellow out” over the next 45 months, we think you’re sadly mistaken.
The Strategy for Surviving and Thriving in Today’s Market
Clearly, Trump isn’t playing around in his second term. He means business and intends to execute his vision, regardless of the short-term pain it may cause. That means that the volatility we’ve seen so far will likely persist throughout his tenure.
If you’re a buy-and-hold investor, that might sound scary. But that’s why I think you must become more than a buy-and-hold investor…
Because this volatility is creating huge opportunities for short-term traders.
All these huge and violent swings in the market are giving traders lots of opportunities to buy low and sell high.
Of course, short-term trading can be risky – and notoriously hard to execute correctly. But what if you had a quant-powered system to help de-risk and simplify such a daunting endeavor?
That’s exactly what we’ve worked to build.
Meet Auspex, a quantitative, machine-driven screener that helps you get in, get out, and get paid month after month in this Age of Chaos.
It scans the market for the rarest type of opportunity – stocks that are simultaneously:
- Growing earnings, revenues, and margins
- Trending up across short- and long-term technicals
- Getting attention from both analysts and traders
These are the strongest stocks in the entire market at any given moment.
And all it takes is about 30 minutes a month to make sure your portfolio is positioned for gains. It’s very easy to execute – and potentially very profitable.
We’re confident this is the system you need to survive – and even thrive – in today’s volatile markets.
Learn more about how Auspex can help you unlock market-beating gains.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
