Unsurprisingly, markets have shown more volatility in 2025 after back-to-back years of 20%+ returns. The S&P 500 has already fallen more than 5% from its all-time high amid concerns over economic growth, inflation, and tariffs.
While a deeper sell-off is possible, history suggests that in over 65% of cases, the market fully recovers without going down more than 10%. However, about 35% of the time, declines extend into a correction, and in 17% of cases, they lead to a bear market.
With our disciplined RiskFirst® approach to investment management, we don’t try to guess what the market is going to do. We follow a disciplined, research-driven process to manage risk unemotionally, helping you stay the course with your long-term financial plan.
Storm After the Calm?
What Occurred Following a S&P 500 drawdown of -5%
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: March 10, 2025
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
