The heightened volatility during 2025 reminded us of the impact of events on markets over the short term. This was demonstrated most starkly through the US S&P 500 index falling by 9.1% in the week that President Trump announced his ‘reciprocal’ tariffs at the start of April. This was the market’s biggest weekly fall since March 2020.
Over the years, there have been many events that have had large impacts on stock markets, including the financial crisis in 2008 and the Covid pandemic in 2020. However, the long-term trend for market performance has continued to remain positive. While you will experience market dips and volatility from time to time, history has shown us that these events do not stop the long-term positive performance of stock markets. It is important to remember there are no guarantees, however, and past performance is not a reliable guide to future performance.
