As of April 2025, tariff talks were progressing and stock prices were seeing more down days than up days as the details rolled out. However, intra-year declines are part of investing. In 2024, for example, stocks pulled back 8% during the year yet arrived at a 23% annual gain.
But pullbacks will test your emotions. “As an investor, you know there are highs and lows during any given year. The challenge is remaining focused during the lows,” says Anna Edelstein, Financial Planning Supervisor at Member Benefits. “It can be tempting to react emotionally.”
If market volatility is feeling tough, keep these points in mind:
Retirement accounts are set up for long-term investing. Focus on your long-term goals and try to ignore short-term market ups and downs. It’s generally not advisable to stop your contributions when the market drops, because your dollars buy more shares when prices fall.
Having clear, prioritized retirement and investment goals will keep you on track, no matter how the market fluctuates. A solid long-term financial plan can help weather short-term volatility and other economic conditions.
A well-diversified portfolio can alleviate some of the effects when the market declines. You want to diversify across, and within, the major asset classes, keeping in mind that investments fluctuate in price.
Take advantage of opportunities to build up your finances by paying down debt, maintaining an emergency fund, and saving up for larger expenses, such as a house or vacation.
Protect your money by staying vigilant for fraud. There are no “risk-free” returns, so be cautious of anyone offering such guarantees. Avoid fraud by working only with registered investment professionals verified through FINRA BrokerCheck and adhering to your established financial plan.
“The Guaranteed Stable Investment through Member Benefits is one option to consider as part of your long-term strategy,” adds Anna. “It’s a more conservative investment in your asset allocation mix.
“If you’re experiencing more volatility than you’re comfortable with, it could be a good time to take a look at your portfolio. We can help with that. Contact us for an appointment.”