The stock market is inherently volatile, and past performance is not indicative of future results. From 1928 through January 2025, the market declined by 5% approximately 3.4 times annually. In that same period, it dropped by 10% just over once per year, while a 15% pullback occurred roughly every two years. A 20% decline has taken place about once every three years.

However, in today’s 24-hour news cycle, it is difficult to disconnect from market movements and the financial headlines. Decisions on tariffs are unpredictable and new developments are occurring daily. Investors react in real-time to executive orders as they are signed, contributing to market volatility.

Every financial adviser will tell you, “Do not look at the market every day.” But in reality — that’s nearly impossible advice to follow. They monitor the market so you don’t have to.
 

It’s your money. You’re emotionally invested because that money represents your future. It’s the actions that you take during heightened emotions that define you as an investor.

Investors have been spoiled by the exceptional returns of the past two years, leading to a bias. Volatility is normal. Even during the historic bull market from March 2009 through February 2020, we experienced 5%, 10%, and 15% declines. Yet, the strong market performance of 2023 and 2024 has conditioned investors to believe the market should only go up.

One of the most common mistakes investors make is giving in to fear. However, investors must remember that it’s not about when you buy—it’s about when you sell. The fundamental value of the companies hasn’t necessarily declined; the market is simply reflecting their current price. If you sell, you lock in the loss. But if you stay the course, your stocks have the potential to recover.

As we navigate the markets remember to stay the course, ride out the storm and stay invested for the long-term objectives.