Since March 2020, the phrase “unprecedented times” has become a fixture in our vocabulary. And what comes with unprecedented times? Volatility. Markets react to uncertainty and lately, uncertainty has been in no short supply. If it feels like every headline shakes the market, you’re not imagining it. Volatility isn’t the exception anymore; it’s the environment we’re in.
Back in January we warned that volatility was likely to remain a central theme throughout the year and as we approach the final quarter, that outlook hasn’t changed. Volatility has been a defining feature of 2025, appearing in some way almost every day, week, and month. That doesn’t have to be a bad thing, it’s simply part of how the market works.
Last year, the markets frequently made headlines for hitting record highs. Then, as new tariff policies were announced by the current administration, sentiment shifted quickly. Suddenly, words like “tumbling” and “plunged” began to dominate market commentary. April 2nd became “Liberation Day” and futures dropped. The following trading session was described as “brutal”, and by April 4th the “crash continued” as China announced retaliatory tariffs, capping off the worst two-day stretch in S&P 500 history. Big news, the market hit its lowest point of the year on April 8th! A bit dramatic, in our opinion, to make a statement like that so early in the year.
Yet, less than a month later, on May 2nd, the S&P 500 recovered to pre-tariff announcement levels, and by June 27th it had surpassed its previous closing high from February. That’s a significant amount of volatility in a short span, and it hasn’t let up since. While not every day or week has been positive, the longer-term trend has shown the S&P 500 continuing to reach new highs.
As your investment professionals, we share this to remind you: volatility is normal. It’s not always comfortable, but it’s part of the journey. Some days will be strong, others less so, which is precisely why it’s beneficial to have a team monitoring the markets for you.
A solid financial plan is what gives us confidence that your long-term goals remain within reach. While we can’t predict the exact timing or nature of every market swing, we do know that volatility is a natural part of the market cycle.
Every plan we build in RightCapital goes through a Monte Carlo Simulation, which stress-tests your financial future against 1,000 different market scenarios. The good, the bad, the ugly, and everything in between. On top of that, we layer in additional conservative assumptions and pressure. The result? A plan designed to withstand whatever the market throws our way, including any additional volatility we may see in the coming months.
This material was produced for Damefender Financial Partners use. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.