By Tarif Carson, CFP® | Director of Portfolio Strategy
Over the last two days, the U.S. stock market has dropped roughly 10%, officially entering correction territory. This recent decline, largely fueled by the announcement of tariffs (emphasis on Tariff, not Tarif) on imports from all countries, has understandably shaken many investors. Fear is in the air — and so is noise.
At times like this, it’s not just the numbers that move — it’s emotions. The headlines scream, portfolios shift, and the instinct to “do something” kicks in. But before reacting, let’s take a breath and remember: volatility is not new. It’s not unusual. And it’s not forever.
At 2nd Story Wealth, we believe moments like these are exactly why you have a plan — not when you abandon it.
Fear Is Real — But So Is Perspective
Let’s be honest, it’s completely normal to feel uneasy right now. Many people are afraid. The voices of panic are loud, and that spreads faster than a tweet (or an X… or whatever we’re calling it these days.) Some are bracing for an economic downturn or even a full-blown recession, and with headlines about DOGE reducing the Federal workforce and talk of more cuts looming— that anxiety is real and valid. But acting on that fear, especially when it comes to your investments, can be costly.
Markets are driven not only by fundamentals, but by behavior. When investors react emotionally, they often sell at the wrong time. And even those who manage to exit before losses accelerate often miss the more difficult second step: getting back in. To win with market timing, you have to be right twice. Few succeed.
Stay Anchored in Your Plan
For those with a long-term financial plan and an intentional investment strategy, now is not the time to panic. Now is the time to trust the process. A well-diversified portfolio… one aligned with your personal goals and tolerance for risk — is built to weather periods just like this.
Right now, international stocks are holding up better, and high-quality bonds are doing their job as investors seek safety. These shifts may present potential rebalancing opportunities — shifting from assets that have held their value into stocks that are temporarily “on sale.” It’s a disciplined way to buy low and sell high — the exact opposite of panic selling and an approach that can add long-term value.
Builders and Retirees: Two Different Opportunities
If you’re in the wealth building phase — working, saving and investing regularly — this is a gift. You’re buying into the market at lower prices. The same investments you believed in last month or last year are now available at a discount.
If you’re retired or near retirement, and your portfolio includes a healthy allocation to bonds, this is the moment those bonds are here for. Rebalancing allows you to move from bonds into equities strategically. And remember: even if your portfolio's value has dropped, you still own the same number of shares in the same productive companies. The businesses haven’t disappeared and the people behind those businesses are still working every day to create value.
At 2nd Story, This is exactly the kind of moment we’ve prepared for.
Zoom Out and Stay the Course
Let’s put things in perspective. Since the S&P 500 bottomed in March 2009, we’ve seen multiple significant drops. During COVID-19, markets fell 34% in just over a month and then rebounded in record time. In 2022, markets dropped over 25% from January to October. While painful, those declines now look like temporary dips on a long-term chart.
Historically, the market has always recovered. Over time, the market rewards patience, discipline, and long-term thinking.
Don’t Let Headlines Dictate Your Future
News is a business, It thrives on urgency and emotion— and panic sells. But your financial future shouldn’t be dictated by headlines. It should be guided by purpose, planning, and perspective.
Corrections, bear markets, and crashes are part of the journey. They’re not detours — they’re the terrain. If you stay the course, keep investing with discipline, and view your plan through a long-term lens, you’re doing exactly what history has rewarded.
The market will rise. The market will fall. And the market will rise again.
Focus on the big picture, the things you can control, and keep building!