Recent Market Pullback – Stay the Course

By now you’ve probably seen headlines about the recent pullback in the stock market. Yes, U.S. stocks have slid off their highs over the past few weeks amid trade war news and recession worries. In fact, many large tech companies have seen significant declines (the top 7 tech giants collectively lost nearly $2 trillion in market value in the first quarter of 2025).1 This kind of volatility can be unsettling, but it’s important to remember that market ups and downs are completely normal. History shows that even with regular pullbacks, markets generally trend upward over the long term.2

Volatility is the price of admission for long-term investing – and over time, patience has been rewarded. For example, during 2020 the S&P 500 plunged by about 34% in a matter of weeks, yet it recovered to finish that year up 16%.3 And 2020 was not an outlier; many years see intra-year drops but still end positive. The key takeaway? Short-term swings do not dictate your long-term success. It might feel tempting to “do something” when the market dips, but often the best move is to stick to your plan and avoid knee-jerk reactions. As one analysis put it, even with pullbacks, staying invested and avoiding emotional reactions is essential for achieving your goals.4 We know it’s not always easy to tune out the noise, but that’s exactly where we come in – to remind you of the big picture and keep your financial plan on track.

If you find yourself feeling nervous watching the market fluctuate, please reach out to us. We’re happy to talk through what’s happening and review your long-term strategy. Remember, market volatility is normal, and over time the market has shown resilience through countless corrections and even bear markets. Sticking with a well-crafted, long-term plan is typically far more effective than trying to time the market’s short-term moves.

  1. https://www.reuters.com/markets/us/global-markets-q1-analysis-pix-2025-03-30/#:~:text=Just%20as%20jarring%2C%20the%20%27Magnificent,100 ↩︎
  2. https://www.whitenercapital.com/post/understanding-market-pullbacks-why-they-re-normal-and-necessary#:~:text=The%20data%20reinforces%20that%20even,essential%20for%20achieving%20financial%20goals ↩︎
  3.  https://www.whitenercapital.com/post/understanding-market-pullbacks-why-they-re-normal-and-necessary#:~:text=positive%2C%20there%20were%20periods%20of,significant%20pullback ↩︎
  4. https://www.whitenercapital.com/post/understanding-market-pullbacks-why-they-re-normal-and-necessary#:~:text=The%20data%20reinforces%20that%20even,to%20pullbacks%20is%20essential%20for ↩︎

Discover more from David Davis, CRC, AIF

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