The S&P 500 has faced its own share of volatility in 2025, flirting with correction territory just last week. The main U.S. stock index is clawing to avoid its fifth consecutive week of declines. Year-to-date it is down 4% for the year. Market analysts warn that this volatility can create rewarding opportunities for investors.
Even more than usual, the S&P 500’s recent performance has put fear into the hearts of many investors. Late last week the index briefly dipped into a correction, defined as a 10% drop from its recent high. A deeper recession, termed a bear market, is when the index loses 20% or more.
As noted by the Schwab Center for Financial Research, we’ve endured 27 such market corrections since November of 1974. Mark Riepe, head of the Schwab Center for Financial Research, has a fascinating nugget of trivia to share. Only six of these corrections have led to bear markets. These have happened in 1980, 1987, 2000, 2007, 2020 and 2022.
Despite the uncertainty, some experts see a silver lining.
Volatility — and opportunity — have arrived. - Austin Pickle, an investment strategy analyst at the Wells Fargo Investment Institute.
As of Wednesday, U.S. large-cap stocks were trading at an average 5% discount to fair market value.
Brad Klontz (photo above) is a certified financial planner and Odyssey Impact’s behavioral finance expert. He urges investors to view the ongoing market volatility as a buying opportunity.
It's an incredible opportunity for you to be putting more money in. - Brad Klontz, a certified financial planner and behavioral finance expert.
Klontz warns against “catastrophic thinking,” an investor instinct during pullbacks that can be ruinous. Christine Benz, director of personal finance and retirement planning at Morningstar, urges investors to keep a cool head. Her advice to investors is to not let fear push them into quick decisions.
