If the market feels unpredictable to you this year, you’re not alone. Between inflation headlines, interest rate speculation, and global conflicts, 2025 has already delivered its share of market swings. And yet, despite the volatility, the S&P 500 continues to hit new highs.
This may seem surprising, especially if you’re watching the news every day. But it’s a powerful reminder of a timeless truth in investing: staying the course through market ups and downs is often one of the best strategies for long-term success.
A Rollercoaster Start to 2025
The first half of the year has seen strong performance in certain sectors like technology and healthcare, even as global headlines have kept investors on edge. Tariff announcements, conflict in the Middle East, and shifting expectations about Federal Reserve policy have created day-to-day uncertainty. However, the market has continued to climb, reflecting long-term optimism and solid economic fundamentals.
For many investors, it’s tempting to want to sidestep short-term risk, but doing so can mean missing out on gains when markets recover, often suddenly and without warning.
What the Last Five Years Can Teach Us
Take a step back and consider what the market has experienced since 2020:
- March 2020: The onset of the COVID-19 pandemic caused a dramatic market crash, with the S&P 500 falling over 30% in a matter of weeks.
- 2021: Markets rebounded strongly, with many indices hitting record highs by year-end.
- 2022: Rising interest rates and inflation concerns led to a bear market, with a decline of about 20% in the S&P 500.
- 2023 to 2024: A slow but steady recovery took hold, driven by strong corporate earnings and resilient consumer spending.
- 2025: The S&P 500 dropped nearly 20% earlier in the year amid geopolitical and policy uncertainty but has since rebounded and reached new highs.
An investor who stayed invested through all of this would likely be in a far better position than someone who moved to cash during moments of fear. While past performance doesn’t guarantee future results, history repeatedly shows that time in the market beats trying to time the market.
Why Missing Just a Few Days Can Hurt
Some of the market’s biggest gains often happen during periods of heightened volatility. It’s not uncommon for a sharp rally to follow shortly after a steep decline. That’s why missing just a handful of good days, especially after downturns, can significantly reduce long-term returns.
Investors who try to time their entry and exit points often end up on the sidelines during these rebounds. While it’s understandable to want to avoid losses, doing so may mean missing the recovery that helps drive long-term growth.
Staying the Course Doesn’t Mean Standing Still
Staying invested doesn’t mean ignoring your portfolio. It means having a strategy that is built for both growth and resilience, one that adjusts based on your goals, time horizon, and risk tolerance, not based on daily headlines.
Regular rebalancing, tax-efficient investing, and revisiting your plan when life changes are all important. But trying to outguess the market rarely leads to better results.
The Bottom Line
Markets will always have ups and downs. But history tells us that patience, discipline, and a long-term view are some of the most powerful tools investors have.
So, the next time volatility hits, remember what the last five years have shown us. While markets may not always move in a straight line, staying invested has historically led to better outcomes.
If you ever feel uncertain or want to review your plan, we’re here to help you navigate what matters most, your long-term financial future.
Securities offered through Valmark Securities, Inc., a member of FINRA/SIPC. Investment Advisory Services offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor 130 Springside Drive, Suite 300 Akron, Ohio 44333-2431 1-800-765-5201.
Velekei Giles Financial Advisors is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
Past performance does not guarantee future results.
Indices are unmanaged and do not incur fees, one cannot directly invest in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.