Shifts in the Stock Market - Good or Bad?

If you have been monitoring your 401k, 403b, ROTH IRA, Individual Brokerage, or any other investment platform that follows the stock market - you are probably freaking out right about now.

The month of April brought MAJOR shifts in the stock market. The markets reacted to the "Trump Tariffs" with 25 percent dips and rallies.

From the start of the year 2022 to the end of year 2024, the stock market saw MAJOR rebound with S&P 500 2022 returns at -19.44% and 2024 returns at 23.1%*. The S&P 500 reached an all time high stock price of $6,152.87 in February 2025**. Some economist had been predicting that this growth and the stock prices at all time highs were not sustainable, and markets would correct themselves over time.

Variability in the market is normal, and over a long-term investing horizon (20-30 years) returns have historically been 8% to 12%, despite big dips or rallies, depending on when an investor pulls money from the market.

I have been consistently investing into my employer's 401k, individual ROTH IRA, and Individual Brokerage account despite the craziness. Currently, my 401k and Brokerage seeing negative returns while my ROTH IRA is returning 6%.

The total of my combined investments today are $132,957.62. I plan to max out my ROTH IRA at the end of the year. My 401k is on track to max out at the end of June.

Why invest if there is so much commotion in the market?

1.) You can't save your way to retirement. Inflation will eat at your money - even in a High Yield Savings - because the returns do not outrun inflation rates.

2.) Market dips are when the market is "on sale". If you buy into the market at this time, you can expect the market to give you a return if you hold long-term.

3.) The longer you wait, the less time you have to let compound interest work in your favor. The money earned in the compounding is invested back to your account, and continues to grow, catapulting your investment growth. A common rule of thumb is that you can expect your investments to double every 7 years.

Let's stay the course to financial independence. Your freedom depends on it!

Ref: https://www.macrotrends.net/2526/sp-500-historical-annual-returns , ** tradingeconomics.com