In just a few weeks, we’ll reach the summer solstice, and it will officially be summertime. But if you’re like me, you already consider June, July, and August the true heart of summer — so let’s kick it off!

This year has been a wild one for investors. But here’s the thing: most years are volatile in the stock market. News about the economy is everywhere — on TV, social media, in everyday conversations, and even at backyard barbecues. It feels more intense lately due to the controversial political climate and the deep division between parties.

But I’ll stop short of turning this into a political discussion. The truth is, every year there’s noise telling you not to invest. Yet since the stock market was founded, it has gone up — over time. That’s the key: time.

Yes, the market goes down — sometimes sharply. But when you look beyond short-term fluctuations, the long-term trend is upward. Trying to invest based on what’s happening today makes it incredibly hard to succeed. Time is your greatest ally in investing — the more of it you have, the greater your opportunity to build wealth.

Back in April, when markets hit their 2025 lows (so far), we sent out a flyer titled “How to Handle Market Declines” from Capital Group. It reminded us that downturns are normal — and temporary.

Here are some powerful stats:

• The market typically drops 5% or more twice per year.
• A 10% or greater decline happens about every 18 months.
• A 20%+ drop occurs approximately once every 5 years.

And how long does recovery take?

• A 5%+ drop: typically rebounds within 2 months
• A 10% drop: recovers in about 4 months
• A 15% drop: bounces back in 7–8 months
• A 20%+ drop: usually takes 15 months to recover

That’s fast. So being out of the market during these periods can hurt you more than staying in.

Emotional investing rarely ends well. Even if you’re not happy with the current economy or political leadership, history tells us things do get better — and often faster than expected. Trying to time the market is a losing game. Stay invested.

And if your current investment allocation is making you uncomfortable, talk to us. We’re here to listen and help you find the right approach for your situation.

Here’s one final example from Fidelity Investments that really puts things in perspective:

• If you had invested $10,000 on January 1, 1988, and stayed fully invested through December 31, 2023, your investment would have grown to $417,995.

• But if you missed just the 5 best days in the market during those 35 years?
  Your return drops to $264,006.

• Miss the 10 best days? Down to $191,498.

• Miss 30 best days? Just $71,035.

• And if you missed 50 best days, you’d only have $31,928.

Bottom line: reacting to market jitters can drastically reduce your long-term gains. You may still outperform a bank account — but not by much. Staying invested, at your appropriate risk level, is the best path forward.

If you’re considering adjusting your risk tolerance, the best time to do so is when markets are at highs — not at their lows.

Have a fantastic summer — and stay invested!

 

Spencer D. Neal, C(k)P ^®

Accredited Investment Fiduciary ^®