2025 was a test of investors’ nerve. Between tariff-induced selloffs, AI valuations swinging, and rapid reversals on policy, even seasoned market pros found themselves recalibrating their playbooks. What stood out wasn’t just the headline risk — it was how portfolios responded over time. Here are the takeaways that matter most going into 2026: 1. Volatility Is Part of the Game From sharp drawdowns in early April to powerful rebounds later in the year, markets reminded us that short-term swings are normal — not aberrations. These episodes underscored the importance of discipline and diversification , rather than trying to time every headline move. 2. Fundamentals Still Matter Most While politics and policy dominated headlines, the S&P 500 and other major indexes ultimately found support from corporate earnings and economic resilience . A disciplined focus on fundamentals, like earnings growth and balance-sheet strength, helped long-term investors stay anchored. 3. E...
2025 was a test of investors’ nerve.
Between tariff-induced selloffs, AI valuations swinging, and rapid reversals on policy, even seasoned market pros found themselves recalibrating their playbooks. What stood out wasn’t just the headline risk — it was how portfolios responded over time.
Here are the takeaways that matter most going into 2026:
1. Volatility Is Part of the Game
From sharp drawdowns in early April to powerful rebounds later in the year, markets reminded us that short-term swings are normal — not aberrations. These episodes underscored the importance of discipline and diversification, rather than trying to time every headline move.
2. Fundamentals Still Matter Most
While politics and policy dominated headlines, the S&P 500 and other major indexes ultimately found support from corporate earnings and economic resilience. A disciplined focus on fundamentals, like earnings growth and balance-sheet strength, helped long-term investors stay anchored.
3. Emotional Discipline Pays Off
2025 delivered its biggest lesson at the intersection of psychology and markets: staying level-headed beats reacting to fear or euphoria. That’s not just a cliché. It’s a strategy that stands up in data and in lived investor experience.
In our next article, we’ll build on these lessons and explore where markets could head in 2026, including the themes investors should watch.
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