Each generation faces challenges that often appear both unique and overwhelming, but when viewed through the sobering lens of history, we find that they are neither.
This year, we have faced and continue to face a number of challenges for the stock market and economy, which, while significant, are arguably no more daunting then:
- A global depression
- Two world wars
- The Cold war
- The assassination of one president and the resignation of another
- 9/11
- COVID 19
And yet, after all of these major events, the market has continued its inexorable climb. Why? In spite of our shortcomings, humans are remarkably resilient, as well as masterful inventors and innovators, often striving to make a better place for themselves, their families, and their societies.
Today, as we enter the fifth month in 2025, the S&P 500 is only down 5% year-to-date and the volatility index has fallen 50% since early April. Despite this, many investors remain anxious about the market's direction. While no one has a crystal ball, and the rapid pace of policy changes may continue to fuel volatility, history consistently shows that markets tend to stabilize and recover over time. Those who exited the market in recent months have likely learned the sobering lesson that staying invested remains the most reliable path to long term gains. Attempting to time the market often leads to missed opportunities and greater losses.
If the market volatility led you to make any decisions you are second - guessing, we encourage you to reach out. We're here to help cut through the noise, provide clarity and guide you back to focusing on your long-term financial goals.