Five years ago, amid the COVID-19 pandemic outbreak, Donald Trump was president, and stocks suffered one of their most rapid corrections ever. Stocks careened lower by more than 20% in just a few months as death counters appeared on news stations and COVID lockdowns took hold. Fast forward five years to the present day and swap out tariffs for COVID, and many similarities exist. President Trump is back in office, and stocks suffered one of their most rapid corrections ever, only to be followed by one of the quickest V-shaped recoveries.
While history does not always repeat itself completely, savvy investors understand that it does tend to rhyme. In 2020 and 2025, investors did a 180-degree turn from full-on fear to “animal spirits.” Not only are investors piling into cash-rich and proven companies like the mega-cap “Magnificent 7” names, but many retail investors are flooding into the market and bidding up highly speculative, risk-on names. Today, we will discuss three of the hottest industry groups on Wall Street.
This post originally appeared at Zacks.