Riding Out the Storm – The Case for Calm in Today’s Markets

Riding Out the Storm: The Case for Calm in Today’s Markets

When markets wobble like they are now in the U.S., it’s tempting to wonder if we’re in uncharted territory. Following President Trump’s Tariff Announcements on April 2^nd, the S&P 500 index closed -9.9% in just two trading days. Adding to the volatility, on Monday, April 7^th, the index opened down -4.5%, and in just 15 minutes jumped up +6% when news leaked of delayed tariffs, only to finish the day down -1% when this news was proven false. The headlines are full of uncertainty, from inflation concerns to geopolitical tensions. But before making knee-jerk decisions, it helps to zoom out and remember where we were not too long ago.

Think back to early 2020. COVID-19 sent shockwaves through the world, and markets responded with a record-setting drop – down 34% in just over three weeks. Fear was everywhere. But not long after, the market staged a stunning comeback, climbing 78% within a year. Those who stayed put reaped the rewards. Those who panicked and sold missed one of the fastest rebounds in history.

Every rough patch brings a new set of worries. Today, it might be rising debt or AI disruption. In the past, it was recessions, oil shocks, or tech bubbles. But through it all, markets have found a way to recover – and often thrive. That’s not blind optimism. It’s what history tells us.

Still, when the ride gets bumpy, the natural reaction is to hit the brakes. But pulling out of the market at the wrong time can be costly. For example, a $10,000 investment in a broad U.S. stock index back in 2000 would have grown to over $66,000 by the end of 2024. If you missed just the best-performing 10 days, that total drops to just $30,000.

The takeaway? Timing the market is a gamble. Sticking with a plan is a strategy.

This doesn’t mean you should never make changes. Life happens, and your financial plan should reflect that. But decisions driven by fear or headlines rarely lead to good outcomes. There’s a big difference between adjusting your sails and jumping ship.

Markets reward patience because they reflect the collective efforts of businesses trying to solve problems and create value. Not every company wins, but the overall system is designed to move forward. That’s why long-term returns have historically hovered around 10% annually.

Smart investing is less about chasing returns and more about consistency. It means building a portfolio that suits your life and having the confidence to stay the course, even when things feel uncertain. A good advisor can help turn that discipline into a plan that actually works for you.

Over time, the real advantage goes to investors who understand that volatility isn’t a bug; it’s a feature. Someone who invested $10,000 in the S&P 500 in 1970 and left it untouched would have more than $2.2 million today. That journey included recessions, wars, and plenty of scary headlines.

Final Thoughts

In the end, it’s not about predicting what’s next – it’s about being ready for whatever comes next.