From Yahoo Finance: 2025-04-25 04:03:00

In 2025, investors faced a roller coaster ride as the Nasdaq fell over 20% from its high, and Dow Jones and S&P 500 entered correction territory. Geopolitical tensions, tariffs, and trade wars added to uncertainty, with Trump feuding with the Federal Reserve. The stock market despises uncertainty, and the market remains volatile.

Investors are uncertain about whether to buy the dip or take a defensive approach. The past has shown that the S&P 500 has never had a negative total return over a 20-year period. The historical average annual return in the S&P 500 has been 8%, with a total return of 10% over the last 97 years.

Investing aligns with personal risk tolerance and time horizon. Young investors with high risk tolerance and long-term goals may benefit from buying beaten-down growth stocks. Those near retirement should balance portfolios across different industries. Time is crucial for compounding wealth, and conducting a portfolio review during market volatility can help focus on long-term goals.

Investors must consider individual circumstances before buying the dip. Conducting a portfolio review and updating investment theses for positions can provide insights into vulnerabilities. It’s essential to align investment decisions with risk tolerance, time horizon, and financial goals.

The Motley Fool Stock Advisor team identified 10 top stocks for investors, excluding the NASDAQ Composite Index. Stock Advisor’s total average return is 829%, outperforming the S&P 500. Understanding nuances in investing can help navigate market volatility and use it to advantage. Time and patience are key to compounding wealth and achieving financial goals.



Read more at Yahoo Finance: Should You Buy the Dip, or Is This Time Different?