The S&P 500 fell 1.7% on Thursday, the 26th daily decline in 2025 with a loss of more than 1%. This is not at all unusual. In fact, since 1928, the market has averaged 29 large declines per year. As we navigate the recent market turbulence, I wanted to take a moment to remind you that volatility is not just normal, it's the entry fee for participating in the stock market's long-term rewards. What we've seen lately is a bit more intense than average, but it's a reminder of why staying invested through ups and downs has historically paid off. Volatility is simply the price of admission for investors.

 

To put this in perspective, let's look some historical data for the S&P 500 since 1950. On average, the S&P has had:

• 3 corrections of 5% or more every year.
• 1 correction of 10% or more every year.
• 1 correction of 15% or more every 3 years.
• 1 correction of 20% or more (a bear market) every 5 years.

These aren't anomalies; they're baked into the market's DNA. Over that 75-year span, the S&P 500 has delivered an average annual return of about 11%, despite these regular pullbacks.

 

Now, look at the chart below of the last seven years (since 2018), where we've endured four notable corrections of 18%, 31%, 25%, and 19%. These are more frequent and deeper than the long-term norms, yet even amid this choppiness, the market has climbed higher overall.

 

The key takeaway? Pullbacks like these test our resolve, but history shows they pave the way for recoveries and growth. If your portfolio is aligned with your goals and risk tolerance, this is simply the market doing what it is supposed to do. We're here to help you navigate, stay the course, and reach your goals.

 

Source: LSEG dataset. S&P 500 daily close from Jan 1, 2018 to Nov 13, 2025

 

I've also included a piece from our CIBC Economics team entitled "Taking risk seriously, again".

 

As always, if you have any questions, please feel free to give us a call at any time.

 

Have a great weekend.

 

Milan