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Still, companies like Gap, which depend on international manufacturing, are feeling the effects.
As of April 17, Gap stock is down almost 23% for the year.
In past instances of market turbulence, Gaps stock has typically rebounded after initial declines.
This historical pattern could indicate that the company could once again recover from the current downturn.
However, the sentiment surrounding Gaps future is may be more mixed this time around.
Additionally, consumer demand for affordable clothing may be affected if prices rise as a result of the tariffs.
Despite these risks, some experts maintain that Gap is well positioned to adapt.
The company has made efforts in recent years to streamline its operations and diversify its supplier base.
In fact, according toFortune, Gap CEO Richard Dickson recently spoke at the Shoptalk retail industry conference.
Big credit goes to our supply chains.
Weve been working on diversifying our manufacturer footprint for quite some time.
Less than 10% of our product is coming out of China, he said.
These moves may help Gap, but the tariffs affect other countries too.
Is Buying the Dip the Right Move?
But for those considering a short-term investment, the risk of further declines may outweigh the potential rewards.
Theres a lot of risk involved in buying Gap stock right now.
There is certainly the possibility that the stock will rebound and investors will see pleasing returns.
Due tothe continuing market volatility, it may be better to wait.
Since so many stocks are experiencing a dip, there are better options.
Skip Gap and try for a different dip that has a higher probability of rebounding, she said.
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