A Little Perspective When Markets Feel Noisy
If you have followed the news lately, it may feel like the markets are constantly reacting to the next crisis, headline, or global event. For many investors, especially those approaching or living in retirement, that uncertainty can feel unsettling.
However, when we step back and look at the bigger picture, a different story appears.
The chart above shows the growth of $1 invested in the global stock market since 1970. Along the way, markets experienced oil shocks, wars, recessions, financial crises, and a global pandemic. Every one of those events felt significant in the moment. Many felt like turning points.
Yet over time, markets continued to move forward.
What stands out in this chart is not the crises. It is the long-term trend.
The line moves up over decades, even though it dips along the way.
Some of the major events shown include:
- The oil embargo and high inflation of the 1970s
- Black Monday in 1987
- The dot-com crash in the early 2000s
- The Global Financial Crisis in 2008
- COVID-19 in 2020
- Recent geopolitical conflicts and banking stress
Each of these periods created fear and uncertainty. Many investors felt pressure to move to cash or make major changes. Those who stayed invested and disciplined were typically rewarded over time.
For those preparing for retirement, the lesson is not that markets avoid volatility. They do not.
The lesson is that volatility is part of how markets work.
Short-term swings are normal, but long-term growth has historically come from staying invested through those periods rather than reacting to them.
For investors already in retirement, the goal is slightly different. The focus is on building a plan that allows your portfolio to support income needs while still giving your investments time to grow. That usually means maintaining a thoughtful mix of investments, keeping adequate cash reserves, and avoiding emotional decisions during difficult market periods.
When markets become noisy, it helps to remember that uncertainty is not new. It has always been part of investing.
The most successful long-term investors are rarely the ones who predict every event correctly. They are the ones who remain patient, disciplined, and focused on the plan.
If recent headlines have raised questions or concerns about your portfolio or your retirement plan, that is completely normal. We are always happy to talk through what is happening in the markets and how it fits into your long-term strategy.
Sometimes the most valuable action during volatile markets is simply remembering why the plan was built the way it was in the first place.
At Dorsey Wealth Management, our focus is entirely on our clients. As a fee-only financial advisor, we prioritize transparency and providing objective advice. We’re dedicated to supporting you in pursuing your financial objectives with loyalty and care.
Whether you’re a current client with a specific financial concern or someone considering working with an advisor to build a comprehensive plan, we’re here to help at every stage. If you’re ready for a strategy tailored to your unique goals and circumstances (rather than a rule of thumb), we’d love to be your partner
Schedule a complimentary 30-minute introductory phone call to discover how we can help you retire with clarity and confidence. You can reach us at (310) 370-7776 or angela@dorseywealth.com. We’d love to help you create a retirement strategy that’s truly your own.