We understand that with everything happening in the world right now, it’s normal to feel unsettled. The combination of economic, political, and global uncertainty can bring about anxiety, stress, and frustration. You may be wondering what all of this means for your family, your future, and the financial foundation you’ve worked so hard to build. It’s natural to have questions, and we want you to know that you are not alone. We are here to support you.
History has shown that while markets experience periods of volatility, they also recover. For example, during the 2008 financial crisis, markets dropped sharply, but those who stuck to their long-term strategy saw significant rebounds in the years that followed. The same was true after events like the Dot-Com Bubble and the sharp decline at the start of the pandemic in 2020.
For a more detailed view of historical returns and volatility, please see the illustration below which highlights performance of the S&P 500 Index from 1980-2024. The gray bars show the returns for each year, and the red dots represent the level of volatility, or the amount the market dropped at some point during that year. Over this 44-year period, the Index increased 34 times but experienced an average decline of -14.1% at some point in any given year. Despite these fluctuations, patient and disciplined investors have been rewarded overtime.
We at Total Wealth Planning are closely monitoring the situation and will continue to evaluate how these changes impact our clients’ financial strategies. We actively look for opportunities to rebalance and take advantage of favorable market conditions, such as buying into certain asset classes when they are undervalued.
If you have any concerns or would like to review your portfolio or goals, we are always here for you. Whether it’s a quick call, a Zoom meeting, or an in-person discussion, we’re happy to connect.
David D. Wilder, CFP® is a principal and chief investment officer at Total Wealth Planning, a fee-only fiduciary financial planning firm in Cincinnati (Blue Ash), Ohio. With over 30 years of experience, Dave leads the Firm’s Investment Policy Committee and Investment Management Team. As a highly-credentialed MST, CFP®, CTFA, and CEPA, Dave has been featured in numerous industry publications including Yahoo finance, the Business Courier, and Channel 12 Cincinnati News. Dave has been recognized as a Five-Star Advisor through Paladin Registry, a 2008 Reuters Top Advisor, profiled in Bloomberg Business Week magazine, and in 2011 was named one of the Top 50 Most Experienced Advisors in the United States. Dave can be reached at dave@twpteam.com.
