While equity market volatility isn’t new by any means, current headlines involving stocks, the economy, and geopolitical events can give readers and investors the impression that the sky is falling. But wise, long-term investors know that the world won’t end prematurely and life goes on. Here’s what you’ll want to know about drawdowns, recoveries, and why diversification still works.
Markets So Far in 2025
2025 has seen unpredictable market activity. In just a few months, the S&P 500 experienced a sharp 19% drop, only to bounce back by July 2025 and reach a new all-time high. This kind of whiplash can rattle even the most seasoned investors. But history shows that staying invested through downturns is one of the smartest moves an investor can make.
At VestGen, we’ve compiled decades of data and learnings into one accessible resource: Hang in There: Your Guide to 2025 Stock Market Volatility [link to popup form]. Whether you’re nearing retirement or building wealth over decades, this guide is designed to give you perspective, strategy, and peace of mind.
What History Teaches Us
Market pullbacks are normal. In fact, the S&P 500 has generated positive total returns in more than 89% of all five-year periods since 1928. Stretch that horizon to 16 years, and it’s never failed to produce a positive return.
And yet, some of the best-performing stocks of the last 40 years, such as the household names Apple, Home Depot, and Nike, each experienced staggering drawdowns of 60% to 90% at some point. The key takeaway? Strong returns often come hand-in-hand with temporary pain.
Diversification Is Still Your Friend
When volatility spikes, the temptation is to go all-in on what’s working—or cash out entirely. But that’s exactly when a diversified portfolio can save you. Whether you’re in equity markets, bonds, or alternative investments, our easy-to-follow guide breaks down how spreading risk across sectors and strategies can smooth out returns and help you avoid catastrophic losses from single-stock exposure.
The Real Risk? Missing the Recovery
Selling during a downturn means you risk missing the upside. Just one strong rally day can have an outsized impact on long-term returns. We saw this in both the 2020 pandemic recovery and again in early 2025, when the S&P 500 rallied more than 9% in a single trading day following news of tariff pauses.
Download the Guide
This guide includes:
- Charts showing long-term recovery trends
- Data from the top-performing stocks (and how far they fell before climbing)
- Insights from Morgan Stanley, Bespoke Research, and our own VestGen analysts
Whether you’re navigating a tough year or planning ahead, this guide will help you frame volatility in context and stay focused on what really matters: your long-term goals.