The headlines coming out of the Middle East have understandably added a layer of concern to an already uneasy market environment. When uncertainty rises, markets tend to react quickly—and not always rationally. I wanted to take a moment to offer some perspective and, more importantly, reinforce how we think about periods like this.
Here's Some Perspective...
Here is a chart I find helpful, especially during times of volatility. It shows every instance since 1950 where the S&P 500 has experienced declines of 5% or more (Brown Columns), as well as the more significant 20%+ drawdowns (Green Columns). What stands out right away is how common these periods are. Drawdowns are not rare events. They are a normal, expected part of
investing in equities. In fact, even in strong long-term markets, there are frequent stretches where things feel uncomfortable in the moment.
The Long-Term Trend Has Been Upward
Despite all those declines—wars, recessions, political uncertainty, and everything in between—the market's long-term trend has been upward. On January 3rd, 1950, the S&P 500 opened at just over 16.6, and on April 7th, 2026, it closed just under 6617. Pretty amazing when you look at all the downturns depicted on the chart.
That doesn’t mean every recovery happens quickly, and it certainly doesn’t mean the path is smooth. But historically, periods of decline have been followed by recovery and growth.
My Insight...
When markets pull back, it can feel like something is “wrong.” In reality, this is how markets behave. We will continue to monitor the situation closely, but there is nothing about the current environment that changes the principles we follow:
-Stay disciplined
-Stay diversified
-Stay focused on long-term outcomes rather than short-term headlines
If anything, periods like this reinforce why those principles matter.
As always, if you have questions or just want to talk through what you’re seeing, I’m here.