On April 2^nd, President Trump unveiled sweeping tariffs on virtually the whole world, which rattled global financial markets. In the 2 days after the announcement, the US stock market, as broadly measured by the S&P 500, fell by over 10%. The market reaction to the tariff announcement resulted in the worst sell-off since the COVID-19 pandemic 5 years ago, temporarily erasing over $5 trillion dollars in stock market wealth.  

I know market ups and downs can feel unsettling, but history has shown time and again that markets recover and go on to reach new highs, often quicky—even after major downturns. The table below shows the 10 worst one-day drops in the US stock market from 1981 to 2025, and the subsequent recoveries.

On average, it took 81 days for the US market to reach its previous high. 8 out of 10 times this happened in less than 60 days and 70% of the time it took place in 20 days or less. The average return 12 months after these market declines was over 30% and the 3- & 5- year subsequent annual rates of return were 12-13%.

The key takeaway? Volatility is temporary, and staying the course pays off. Emotional decisions often lead to missed opportunities, but market dips can also create opportunities to adjust and strengthen your strategy.

In periods of market volatility, it is important to maintain a long-term perspective. Our client's investment portfolios are built with resilience in mind, with proper diversification by geography and asset class. History has shown us that, as uncomfortable as it may feel during the midst of a market sell-off, staying the course is usually the best approach. Keep calm and carry on and know that I am here anytime to help if you have any questions or concerns.