Planning Financial Futures

 

Market Correction Update

Staying the Course Through Market Volatility

As of March 13, 2025, the S&P 500 has entered “correction” territory, experiencing a 10% decline from its recent high. Market fluctuations like these are not unusual. In fact, historically, the stock market has seen an average intra-year decline of 14.1%. The current volatility is driven by concerns over an economic slowdown and uncertainty around tariffs. 

While market movements can be unsettling, it’s important to remember that volatility is a normal part of investing. The key to long-term investment success lies not in trying to predict market movements, but in maintaining a disciplined, well-structured investment approach.

The Pitfalls of Market Timing

Trying to move in and out of the market based on short-term events often does more harm than good. Studies consistently show that missing just a few of the market’s best days can significantly impact long-term returns. Successful investing is about time in the market, not timing the market.

Rather than reacting impulsively to market volatility, focus on what you can control: maintaining an appropriate asset allocation, contributing consistently and staying committed to your long-term plan. History has shown that those who stay invested through market cycles tend to be better positioned for long-term financial success.

If you have concerns about your investment strategy, consider reviewing your portfolio or consulting with your advisor.