Market Volatility in 2025

Markets in 2025 have been anything but calm — but volatility is normal, and reacting to headlines usually does more harm than good. In this video, Michael Alman explains the timeless principles that matter more than any single week in the market.

Video transcript

Markets in 2025 have been anything but calm. With inflation concerns, interest rate changes, and new headlines every day, it can feel like a time of more chaos than ever, and that might cause investors to wonder whether they should make a change. Hi, my name is Michael Alman and I’m a financial adviser with Patriot Asset Advisors, and we’re going to walk through the changes in the marketplace today.

Market volatility is nothing new. In 2008, 2020, and countless times before, we’ve seen the market go through tumultuous changes, but the principles of good investing remain the same. The first principle is that volatility is normal. We should expect the market to go up and down, and the short term is the price we pay for long-term gains. We shouldn’t build portfolios with only the short term in mind, but rather look at our investment portfolio over a long time horizon.

Second, changing your portfolio based on headlines is usually more harmful than helpful. Even professionals can’t effectively time the market. Instead, focus on your personal plan — your investments, your risk tolerance, your time horizon, and most importantly your goals all factor into how we treat the market’s upturns and downturns. What matters most isn’t what the market does this week, but whether your investments are properly aligned with when you’ll most need that money.

If you’re in or near retirement, volatility can feel especially uncomfortable — which is why diversification, rebalancing, and cash flow management are so important throughout the retirement planning process. And if you’re still building wealth, volatility can actually be your friend: lower prices mean buying opportunities if you’re investing consistently. If you’re unsure where you stand, now might be a great time to review your strategy with a professional — not to panic, but to make sure it still fits your life goals and plans.

So should you change your investment strategy in 2025? For most people, the answer is no. We’re looking at a long time horizon, and we should be able to withstand the ups and downs. If you’d like help reviewing your portfolio or your strategy, feel free to give us a call — we’re happy to help. Remember, the best time to start investing was yesterday, and the next best time is today.