Buying in the Liberation Day dip has paid off for many investors. It has been especially lucrative for those who bought certain S&P/ASX 200 Index (ASX: XJO) shares, which are now up at least 35% in just over a month.
Image source: Getty Images
Revisiting the Liberation Day Dip
Equity markets took a serious hit in early April after US President Donald Trump unveiled 'Liberation Day' tariffs. The shock of tariffs being placed on almost every country (including an uninhabited penguin island near Antarctica!) surprised equity markets.
Trump had extensively discussed his tariff ambitions on the campaign trail. However, many Wall Street analysts had believed this to be a negotiating tactic. When he actually followed through with his vision on 2 April, many investors were caught off guard. Uncertainty led many investors to press the sell button, sending markets sharply lower.
Since then, markets have rallied strongly. The drip of positive news related to tariff pauses, exemptions, and trade deals has been a key catalyst for the rebound. Last night, President Trump revealed that the US had entered its first trade deal with the United Kingdom.
Three ASX 200 stocks have risen more than 35% in a month. Brave investors who decided to be greedy when others were fearful have been well rewarded.
Which ASX 200 stocks have knocked it out of the park this month?
Boss Energy Ltd (ASX: BOE)
Boss Energy shares have had a blockbuster month. At the time of writing, the ASX 200 energy share is up 87% since its 7 April dip. As The Motley Fool's Bernd Struben recently wrote, Boss Energy shares have enjoyed a lift from a rebound in slumping uranium prices. Specifically, uranium has lifted from US$64 per pound in early April to just over US$70 per pound this week. Boss Energy is also benefiting from the fact that Uranium is exempt from US tariffs.
Pro Medicus Ltd (ASX: PME)
Pro Medicus has been another standout performer over the past month. The ASX healthcare stock is up a staggering 42% since 7 April. At the time of writing, it is trading at $250 a share, which is still a little way off its all-time high of $298 earlier this year. Yesterday, the company announced another contract win – that its wholly owned United States subsidiary, Visage Imaging, had signed a $20 million, five-year contract with the University of Iowa Health Care (UI Health Care).
NextDC Ltd (ASX: NXT)
Finally, NextDC has also had a memorable month. Since 7 April, the ASX 200 technology stock has risen 35%. Earlier this week, NextDC reported that new contract wins had increased its pro forma forward order book at 31 March by 54%, or 45MWm to 127MW since 31 December. This was a record result for the company. Based on this result and its share price performance, investors who bought NextDC during the Liberation Day dip are unlikely to regret their decision.
Foolish Takeaway
In hindsight, these were all magnificent trades. However, most investors would agree that picking 'the dip' is much more difficult than it seems. Hats off to investors who bought Boss Energy, Pro Medicus, or NextDC on 7 April. Even if you invested close to that date, chances are you've beaten the market by a significant margin with the ASX 200 Index up 12% since then.
