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The Rollercoaster of the ASX 200: Navigating the February 2025 Correction
February 14, 2025, ushered in not just Valentine’s Day but also a monumental high for the S&P/ASX 200, which closed at an impressive 8615.2 points. However, this peak was shortly followed by a significant downturn attributed to what has been dubbed the "President Trump Trade War Correction" or PTTWC. Following a series of aggressive tariff announcements by the re-elected President Trump, the ASX 200 fell dramatically, reflecting the heightened uncertainty in global trade.
The Impact of the PTTWC
From the peak in mid-February until early April, the ASX 200 plummeted by 1,446 points, a decline of 16.7%, knocking on the door of a bear market, while major US indices also suffered substantial losses. The S&P 500 slid over 20%, and the Nasdaq Composite fell by approximately 25%. Conversely, by mid-May, a recovery began, with the ASX 200 rallying over 15% from a low of 7169.2 points achieved on April 7. This rebound was partly due to President Trump’s retreat from some initial tariff plans, illuminating the volatility and rapid shifts in market conditions.
ASX 200 Top Performers and Underperformers Since PTTWC
As markets gradually calmed, analysing stock performances during this tumultuous period reveals winners and losers among ASX 200 stocks. Below are summaries of the top and bottom performers that emerged following the initial downturn:
Top 20 ASX 200 Performers
- MP1 – Up 47.3%
- 360 – Up 42.3%
- RRL (Regis Resources) – Up 35.1%
- WAF (West African Resources) – Up 32.8%
- BOE, GOR, LTR, EVN, KAR, PRU – Solid gains, primarily from gold sector stocks.
- Financials and consumer stocks, including MPL (Medibank) and APE (Australian Peace), also displayed strong performances.
These stocks indicated resilience and growth potential amidst market turbulence, showing that while the broader ASX 200 index fell around 3.9% during this timeframe, these top performers thrived.
Bottom 20 ASX 200 Performers
On the other end of the spectrum, certain stocks faced severe declines, with CRN (Coronado Global Resources) experiencing a staggering fall of 63.3%. Other notable underperformers included companies in the energy and consumer sectors (e.g., BGL, PLS, SMR, and IEL) reflecting the broader economic anxieties tied to trade.
This analysis highlights how previous stock trends and analyst sentiments, such as those collated via ChartWatch ASX Scans, could have provided insight into both strong uptrends and concerning downtrends. Investors who actively monitored these indicators may have successfully avoided losses by steering clear of troubled stocks while capitalising on outperformers.
Preparing for Future Corrections
As the market looks participants towards a degree of stability, the pressing question remains: how will investors fare in the next correction? Reflection on individual portfolios is essential. Did you hold more stocks from the top performers list than those in the worst performers? If not, this is an opportunity to reassess.
Reviewing investment methodologies and risk management strategies is vital. Determine how you assess market entry and exit points, what risk levels you can tolerate for each investment, and which tools are most beneficial for ongoing analysis. As the adage goes, “Failing to plan is planning to fail,” emphasising the importance of strategic planning in investment success.
As markets evolve, investors must equip themselves with robust strategies and be prepared for the inevitable fluctuations that characterise the stock market landscape. Now is the time to analyse performance, adjust strategies, and ensure readiness for whatever the next market correction may bring.
