Firm Commentary

As we look back over the past twelve months, a familiar pattern in the markets stands out: strong gains often come with meaningful pullbacks along the way. 2025 was no exception. The S&P 500 saw a mid-year decline of 18.9%, yet still finished more than 16% higher year to date.

While those swings can feel uncomfortable in the moment, they’re far more normal than many realize. As the below chart illustrates, since 1980, the S&P 500 has averaged an intra-year drawdown of more than 14%—all while delivering an average annual return of 10.7% during that same period. Volatility may grab the headlines, but historically, long-term growth has told the fuller story.

As we step into 2026, there’s no guarantee the year will follow the exact same pattern—but history suggests that periods of turbulence are simply part of the journey toward long-term progress. Keeping this perspective can help you stay focused on your plan rather than getting pushed off course by short-term noise.

If you’d like help reviewing your strategy or ensuring your portfolio is aligned with your financial goals, our team is ready to help. Connect with us at: https://www.connected-wealth.com/next-steps.