When The Market Dips, Should You?
If April were a person, it would be that friend who shows up late to dinner, spills a drink, tells a wild story, and somehow still manages to leave everyone reflecting afterward. April gave us plenty to think about: fast-moving headlines, market swings, and a whole lot of emotional whiplash. But tucked inside all the chaos were some really important lessons. If you are feeling a little unsettled by the headlines or what your portfolio did last month, this post is for you. Let’s walk through what happened, what it means, and most importantly, what you can take away from it.
So, What Did Happen in April?
Let’s set the scene: In early April, the White House rolled out massive new tariffs big enough to shake up nearly every corner of the global economy. The market panicked. The S&P 500 dropped more than 12% in just days. Investors were rattled. And then, almost just as quickly, the market bounced back. By the end of the month, the S&P had lost less than 1%. In stock market terms, that is like getting caught in a surprise thunderstorm, only to find sunshine 10 minutes later and realize you did not really need to run for cover after all.
Teaching Moment: The Danger of Reacting in Fear
Let me share something that really stood out this month: a chart showing what happens if you sell your investments right after a 2% market drop and then wait a few days or weeks to get back in.
Spoiler alert: you lose more than you think.
It is like jumping out of a moving car because the road gets bumpy, only to realize you have seatbelts, airbags, and a GPS guiding you through. The lesson? Volatility is part of the ride. The cost of stepping off the path, even temporarily, can be greater than the bumps along the way.
Missing just a few days after a downturn can significantly reduce long-term returns. Staying invested matters.
Real Life: The Grocery Run Analogy
Let’s say you head to the grocery store for paper towels and walk out with a cart full of things you did not plan on. (We have all been there.) Now imagine if the market were the grocery store. Sometimes, a little chaos (or volatility) can trick you into making decisions you did not plan on, grabbing fear or impulse off the shelf without checking whether it belongs in your cart. But when we shop with a list (a plan), we stay focused. That is why we build financial plans around your values and goals. So, when the aisles get overwhelming, you can stick to what matters.
So, How Did Everything Else Do?
Beyond the drama in stocks, here is what we saw in April:
GDP shrank slightly, by about 0.3%, as companies rushed to stockpile goods ahead of the tariffs.
Retail sales dipped, especially online shopping (down 1.9%).
Inflation ticked up only 2.4%, which is slower than expected and actually a good sign.
Bond markets held steady, and many diversified portfolios remained relatively stable, thanks to income from bonds and international stocks.
The U.S. dollar weakened, helping international investments perform better, a win for diversified portfolios.
All in all? It was a weird month. But it was not a disastrous one.
Even as overall GDP declined, consumer spending stayed strong, offering a signal of underlying resilience.
The Bigger Message: Stick With Your Why
Markets are emotional. Your goals are not. Whether you are saving for retirement, your kids’ education, a future home, or just financial peace, your investments should reflect those values, not the emotions of the moment. April reminded us of this in a big way. When we make decisions based on fear, we risk drifting away from our goals. But when we trust the process, stick to our plan, and stay aligned with our values, we are much more likely to reach the future we envision.
What Should You Do in May?
The honest answer? Probably nothing drastic. Now is a good time to:
Revisit your plan (Are your goals still the same?)
Check your diversification (Are you spread across the right asset classes?)
Stay curious but not reactive (News is information, not instruction)
And if you are still feeling unsure, call me. We will talk it through, look at the numbers, and bring your focus back to what truly matters: your life, your legacy, and your peace of mind.
Final Thought
April was loud. May does not have to be. Let’s move forward with steady hearts, clear plans, and the confidence that comes from being surrounded by people who care. Your financial journey does not have to be perfect. It just has to be aligned with your purpose, your values, and your future. And we are here to walk beside you every step of the way.