How to manage around market volatility

We have received many questions from clients regarding managing investment portfolios during market volatility. This is an especially timely topic given the market’s recent performance, with the S&P 500 down 13% so far this year. Understanding how to navigate market turbulence is crucial for long-term financial success, as volatility is an inevitable part of investing. Here are some key strategies to consider:

• Maintain proper diversification across asset classes, as evidenced by how a 60/40 stock/bond portfolio has declined only 4.6% this year compared to the S&P 500’s 13% drop as of April 7, 2025.
• Adopt a long-term perspective, recognizing that since World War II, there hasn’t been a single
  20- year period where diversified portfolios experienced average annual declines.
• Practice disciplined investing rather than making emotional decisions during market stress, which often leads to buying high and selling low.

The included chart shows total returns and pullbacks of the stock market, illustrating that while significant intra-year declines are common even in positive years, markets have historically recovered and moved higher over time. This visual reminder can help maintain perspective when volatility increases.

Remember that market volatility, while uncomfortable, is the price investors pay for long-term growth potential that has historically outpaced inflation and helped build wealth over time.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.