Why Staying Invested Matters: Lessons from a Volatile Year
If 2025 has taught us anything so far, it’s that market volatility is inevitable—but panic is optional.
From geopolitical tensions to inflation surprises and shifting Federal Reserve policy, investors have had plenty of reasons to feel anxious. The S&P 500 has seen several sharp swings, with corrections in both directions. Yet amid the noise, one truth has held steady: Staying invested beats trying to time the market.
The Cost of Missing Just a Few Good Days
History shows that the market’s best days often follow its worst. According to a 2023 J.P. Morgan study, missing just the 10 best days in the market over the past 20 years would have cut your returns by more than half.¹ And seven of those 10 days occurred within two weeks of the 10 worst days. That means pulling out after a drop and waiting for things to “settle down” often leads to missing the recovery.
Volatility is the Price of Admission
Markets are not linear. They surge, retreat, and often do so for reasons that aren’t immediately clear. Yet long-term investors are rewarded for enduring the bumps. The S&P 500’s average intra-year drop is about 14%, yet the index has ended the year in positive territory about 75% of the time.² Staying the course—even when uncomfortable—is key.
Behavior Is More Important Than Forecasts
You don’t need to predict the market to be successful—you just need a disciplined process. That’s where working with an RIA adds value. A well-designed financial plan takes into account market downturns, not just sunny days. As Vanguard’s “Advisor’s Alpha” research confirms, the behavioral coaching RIAs provide may contribute up to 3% in annual net return—largely by helping clients avoid emotional decisions.³
Stay Invested, Stay Informed, Stay on Track
This year’s volatility reminds us that markets don’t reward perfection—they reward participation. Rather than trying to sidestep downturns, successful investors remain focused on their long-term goals, trust the planning process, and stay invested through the noise.
Having a comprehensive financial plan will help you weather years like this one, and keep your eyes on what is most important: your goals. If your goals haven’t changed, your strategy likely shouldn’t either.
Sources:
- J.P. Morgan Asset Management – “Guide to Retirement” (2023)
- BlackRock – “Staying Invested Matters” chartbook (2024)
- Vanguard – “Advisor’s Alpha” research study (2023)