What a week. As I am sure you're very aware by now, the markets sold off dramatically after a new round of wide ranging tariff announcements. So here we are now, almost free from the clutches of tax season, when tariff season showed up - just in time to remind us that volatility doesn’t take spring break.
If you’re feeling uneasy, you’re not alone. But here’s some quick perspective: since 1990, the S&P 500 has averaged an annual return of 10.5%. That’s the return everyone focuses on. But what often gets overlooked is that in those same years, the market dropped about 14% at some point along the way.
So far in 2025, the S&P 500 is down about 14%. That’s uncomfortable, but entirely within the bounds of historical norms. What we’re experiencing now isn’t new. It’s just how markets process uncertainty - in this case, tariffs, inflation, and shifting interest rate expectations.
This week’s tariff news is being called “unprecedented” - unless you count the McKinley Tariff of 1890 (which, let’s be honest, most people don’t). The tools may look different, but trade tensions aren’t new. Neither is the market’s reaction to them.
I wasn’t around in 1890, but I do remember having my afternoon cartoon...I mean homework...being interrupted by news coverage of the 1987 Black Monday crash. I didn’t know what the Dow was back then, but I knew it wasn’t good if it knocked G.I. Joe off the air.
The morale of the story is that we’ve been through this kind of volatility before. COVID. The financial crisis. The dot-com bust. The '87 crash. Go back far enough and the list keeps growing. What all those moments had in common was short-term jitters and long-term recovery.
That’s what we build for. Portfolios designed to weather turbulence. Plans tied to your goals, not this week’s headline.
If the recent swings have you feeling unsettled, let’s talk. Whether it’s reviewing your plan or just putting the current moment in context - I’m always here for that.
Until next time, I hope you’re enjoying the early days of spring and maybe even sneaking in your own version of a spring break, especially after tax season and a week like this in the markets. A little sun and perspective sure can go a long way!
Steve