The market has regained much of the ground it lost earlier this year. This rebound is largely due to stronger-than-expected GDP growth and easing inflation pressures, which have boosted investor confidence. 1 What’s more, the recent U.S.-China trade deal, which rolled back tariffs on both sides, has strengthened market recovery and bolstered global sentiment. 2
To me, this recent recovery serves as a great reminder of just how resilient our financial markets are AND how market uncertainty often creates opportunities for long-term growth.
What History Tells Us
Consider these key points about market cycles:
- Bear markets are temporary: On average, bear markets last about 10 months, with losses averaging 35%. 3
- Bull markets endure: Bull markets, by contrast, tend to be longer and more rewarding, averaging close to three years, with gains of 111%. 3
- Recovery often follows steep declines: Historically, markets have delivered strong returns in the year following a 15% decline, with average gains of nearly 47%. 1
While the future still holds risks — such as potential inflationary pressures or policy changes — the key to navigating these challenges is to stay focused on a long-term financial strategy. Remember, markets operate 251 days a year, and reactionary decisions could mean missing out on the ideal recovery days.
My question to you is this: Do you feel your strategy effectively balances growth opportunities and risk management over time?
Another question: Has your financial advisor checked in with you recently? If not, maybe it’s time for another look.
Learn Where You Stand
Reach out and schedule a call if you’re not sure your financial strategy is taking advantage of the opportunities available to you. I’d love to talk about ways we can help.
Warmly,
Barry
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“The most important lesson an investor can learn is to be dispassionate when confronted by unexpected and unfavorable outcomes.”
– Peter Bernstein
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Sources:
1 Andrew Slimmon. Morgan Stanley. April 29, 2025. “Stock Market Outlook: Bull Market May Not Be Finished.” https://www.morganstanley.com/insights/articles/stock-market-outlook-2025-q2-update. Accessed May 19, 2025.
2 Nectar Gan, Auzinea Bacon and Juliana Liu. CNN Business. May 12, 2025. “US and China agree to drastically roll back tariffs in major trade breakthrough.” https://www.cnn.com/2025/05/12/business/us-china-trade-deal-announcement-intl-hnk. Accessed May 19, 2025.
3 Hartford Funds. “10 Things You Should Know About Bear Markets.” https://www.hartfordfunds.com/practice-management/client-conversations/managing-volatility/bear-markets.html. Accessed May 19, 2025.
