As the markets regain their footing and the S&P 500 approaches a new all-time high, investors are breathing a cautious sigh of relief.
The recent correction was sharp and unsettling and came dangerously close to ushering in a bear market. But now that the volatility has subsided, it’s time to ask: What can we learn from this turbulent chapter?
Periods of market stress often reveal more than they obscure. They test our assumptions, expose vulnerabilities, and—perhaps most importantly—offer valuable insights for the road ahead.
Stop trying to time the market. Few anticipated just how aggressive the president’s reciprocal tariffs would be. The market’s reaction was swift and severe, and the S&P 500 plunged more than 10% in just two days.
It wasn’t quite a crash, but it certainly felt like one unfolding in slow motion. Remarkably, the rebound has been nearly as dramatic as the selloff. With investor sentiment at rock bottom, a recovery seemed unlikely to many during the darkest moments.
Yet here we are, witnessing a rally that’s defied expectations and reminded us just how quickly market narratives can shift.
Your long-term financial plan incorporates detours on the road to your financial goals. Historically, a well-diversified portfolio has delivered strong long-term results. But markets rarely move in a straight line—and unexpected detours are part of the journey.
Earlier this year, stocks were priced for perfection. So, when unwanted surprises emerged, the selloff was swift and unforgiving.
How did you respond? Did you stay the course, or did the volatility keep you up at night? Were you tempted to sell?
Emotional decisions, especially in moments of market stress, rarely bring you closer to your financial goals. If recent market swings left you feeling anxious or uncertain, it might be time to reassess your risk tolerance and ensure your portfolio still aligns with your long-term goals.