On April 29, 2025, U.S. Treasury Secretary Scott Bessent conducted an on-location press conference at the White House. He addressed the difficulties of the present economic environment directly. His comments served to underscore the staying power of retail investors, as the U.S. economy stands on the precipice of major issues. Apollo’s chief economist Torsten Slok says we’re headed for a summer recession. Specifically, he says trade-related shortages will start hitting stores next month, stoking this economic downturn.
Bessent, speaking alongside White House press secretary Karoline Leavitt, emphasized the trust that individual investors continue to place in President Trump. He noted that during a recent market downturn, retail investors took advantage of lower stock prices, demonstrating confidence in the long-term viability of their investments.
“Individual investors have held tight, while institutional investors have panicked … individual investors trust President Trump,” Bessent stated. He cited recent statistics from Vanguard, one of America’s largest money management firms. This new data showed us that in the midst of a pandemic, 100 days later, 97% of Americans haven’t traded-in their investments.
The picture behind Bessent’s briefing is one of extreme volatility in the market. The S&P 500 index, as measured by the SPY ETF, recently crashed over 30%, dipping for a short spell under bear market conditions. This sell-off was our severest downturn since the onset of the COVID-19 pandemic in 2020. Even though the index has more recently recovered most of that dip, the index is still about 10% lower than its all-time high from February.
Anxiety over President Trump’s global trade policies was a topic of discussion during the briefing. Ken Griffin, founder and CEO of Citadel, recently expressed his dismay over Trump’s trade war. He cautioned that it might harm the “brand” of the United States and undermine the allure of U.S. Treasury debt. Steel and aluminum tariffs The administration’s most controversial tariffs – suspended after a chaotic rollout – nevertheless contributed to volatility in the financial markets.
As the economy braces for potential recessionary impacts due to trade disruptions, retail investors appear undeterred by the prevailing uncertainty. Instead, they have done an admirable job of defending their turf in the growing Branchless Banking market. Conversely, larger institutional investors are more spooked by negative changes in economic indicators.
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