Should I Fear this Bear?

This article is based on recommendations from April, 2025.

The markets have been volatile since Trump’s inauguration and the events of the first few days of April 2025 have really been scary. We are once again in bear market territory. I know this time feels different – it always does. (Check out our previous blog that explains more about bear markets.)

To be in a bear market means we’ve had a 20% drop in the market from the most recent high. Though it may not seem like it, bear markets happen all the time and one was frequently indicated due to the economic cycle and market valuations. A bear market would not have been a shock even without the tariff announcements.

This kind of volatility is not uncommon. Markets dropped over 30% in Covid and rebounded. Not long ago in 2022, markets were down 22% then swung up 25% in 2023 and again in 2024. So even under “normal” circumstances, a 20% decline is not surprising to market analysts.

Tariffs may have popped the bubble, but they are concerning on their own, and markets may still have a way to go before reaching the bottom. Nonetheless, for retirees and long-term investors, you need to stay invested. This is the worst time to change your investment strategy.

Those with shorter-term and taxable accounts may experience additional anxiety with losses. Please look at the total account value year to date (YTD), not just the stock allocation accounts today.

Hang in there. If you need to talk, give us a call.