Can Markets Survive the Next Big Policy Shift?

To My Readers,

From rising interest rates to trade tensions and political headlines, policy changes can rattle even the most seasoned investors. But here’s the good news: despite all the turbulence, the market has consistently bounced back and grown stronger.

Let’s take a look at what history tells us about market resilience in the face of major policy shifts.

10 Policy Events That Shook the Market

Here are some of the most significant policy-related market disruptions over the last 50+ years and how long it took for markets to recover:

Even though the drawdowns were sharp, the markets always rebounded.

Long-Term Growth Outlasts Short-Term Shocks

If you had invested $10,000 in the S&P 500 back in 1971 and simply stayed invested, it would’ve grown to $638,267 by the end of 2024, despite all the market drops along the way.

That’s the power of staying the course.

What This Means for You

Volatility is part of investing, especially when governments make big moves. But history is clear: long-term investors are rewarded for their discipline.

Here are a few tips to stay confident:

• Focus on your personal goals, not headlines.

• Keep a diversified portfolio aligned with your risk tolerance.

• Review your plan regularly with a financial advisor.

If you’d like to discuss how to keep your investments resilient through market shifts, I am happy to help.

Sid Misra, CFP

Beacon Financial Group