Two the Point — Volatility: The Price of Admission for Long-Term Investing

While short-term market swings often feel uncomfortable, history shows that volatility is a normal part of long-term investing. In this week’s update, we explore why staying disciplined through uncertainty is critical, and how we’re working proactively to help Clients navigate these challenging periods with thoughtful portfolio positioning.

Key Insights:

• Market Pullbacks Are Normal: Since 1980, the S&P 500 has experienced an average intra-year decline of 14%, even in years that finished positive​.
• Power of Staying Invested: Missing just the ten best days over the last 25 years would have cut total returns by more than half​.
• Behavioral Risk: Investor reactions, not volatility itself, are one of the biggest risks to achieving long-term goals​.
• Patience Pays: The S&P 500 has delivered an average annual return of over 10% for the past 35 years​, despite countless reasons to sell along the way.
• Our Commitment: We are actively stress-testing portfolios and seeking thoughtful opportunities to position Client assets resiliently in this environment.