The recent downturn in equity markets has heightened fears of a looming recession among investors. Factors such as newly imposed tariffs by the new presidential administration, concerns about an economic slowdown, and persistent inflationary pressures have all contributed to the prevailing bearish sentiment. While equities have declined in recent weeks, credit spreads — the gap between corporate bond yields and U.S. Treasury bond yields — have widened. This widening is seen by some as a potential recession signal, reflecting greater risk aversion and unease about the economic outlook.

For instance, the ICE BofA U.S. H

As highlighted in previous LPL Research blogs this week (“Invest in the Long Term” and “Equity Markets Grapple With Tariffs”), market volatility and pullbacks are not uncommon by any means. Unfortunately, what is also not uncommon during bouts of volatility is headlines reliving previous crises that attempt to compare and draw parallels. One of those narratives as of late surrounds the dollar, facing its worst start to a year since 2008. But while the dollar may be experiencing some headwinds, this does not spell doom and gloom for King Dollar or the U.S.

Tariff and trade developments have dominated headli

This latest bout of market volatility has been unsettling, especially after such a strong multi-year run for stocks. At times like these, historical perspective can be helpful. Here, we’ve assembled some charts that help make the case for staying invested. While we haven’t seen enough supportive evidence to call for a short-term tactical low in stocks (though we’re getting closer), for investors willing to hold for over a year, the rewards should outweigh the risks. In fact, if you believe, as we do, that recession will be averted this year and a correction (10–19% decline in the S&P 500) is more likely than a bear

As investors who focus their investments on retirement or other financial goals, we know market volatility can be unsettling, but it is also a natural and necessary part of investing. The simple key is to stay disciplined, focus on those goals, and continue to make informed decisions that are unobstructed by emotion. If you indeed have lingering concerns about your portfolio, the best thing to do is to check in with your financial advisor for how to plan around these occasional periods of volatility.

In terms of today’s market, the degree of volatility we have seen in recent days has been a rarity over the last two years, m