Viewpoint – April 9, 2025 – Navigating Market Volatility: A Long-Term Perspective
Recent market volatility has left many investors feeling uneasy, particularly as trade negotiations—once handled behind closed doors—are now playing out in public. This can lead to second-guessing and increased uncertainty. However, it’s important to remember that trade policy changes, such as other countries reducing tariffs on American-made goods, can ultimately benefit U.S. exports and create jobs.
While public negotiations may cause short-term instability, history shows that markets tend to rebound faster than expected after temporary dips. For instance, in 2022, when interest rates surged and markets dropped by 25%, most investors who remained invested were rewarded as the markets recovered over the following two years. Similarly, during the 2020 COVID-induced crash, investors who stayed in the market were well-positioned to benefit from the subsequent recovery.
Key Investment Principles:
- Fear is the enemy of investors – Panic selling during downturns is never a good strategy.
- Market timing doesn’t work – Trying to predict short-term market movements often results in missed opportunities during recoveries.
- Rebounds happen faster than expected – Market recoveries tend to surprise on the upside.
- Volatility is part of the journey – Accepting occasional market swings is necessary to achieve strong long-term returns.
- Focus on the economics, not the politics – Temporary market shifts due to political events are common, but they don’t define long-term performance.
It’s not different this time – While each market dip has its own cause, the result is always the same: eventual recovery.
The economy remains strong, resilient, and capable of weathering short-term challenges. While concerns about a potential recession are widespread, slower growth does not mean a crisis.
As fiduciaries, we stay on top of economic and market trends, carefully considering expert opinions and forecasts. Despite media-driven fears, extreme negative outlooks are often exaggerated. Selling in response to short-term market dips has historically proven to be detrimental.
Long-term, diversified investors have always benefited from staying the course through periods of volatility. With many clients—especially retirees—focused on long-term income, we emphasize the importance of sticking to a strategy that doesn’t involve reacting to short-term fluctuations.
Many investors are already seeing current market conditions as an opportunity to invest new money at lower prices, positioning themselves for future growth. As always, we are here to discuss your investments and concerns at any time. Communication and education are the keys to successfully navigating these markets. We strongly encourage you to give our office a call if you have any questions, concerns or would simply like to catch up! We can be reached at 860.623.0104.
All the best,
Brian, Arnie, Dan, JT and Tom
As usual this commentary is based solely the opinions of Brian Cassidy, Arnie Magid, Daniel Kelly, JT Galloway and Tom Kanyok. Nothing in the above written material is endorsed by, or written by, or provided by Cambridge Investment Research, Inc., or by any other outside party or firm.
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cassidy Financial Services, LLC. and Cambridge are not affiliated.
