When markets fall sharply, they test not just your portfolio — but you.

In April, the S&P 500 dropped nearly 20% in a matter of weeks.

For many investors, it wasn’t just a financial dip — it was an emotional gut punch. If you felt anxious, lost sleep, reconsidered big purchases or travel plans, or found yourself itching to change your investment strategy, it’s a sign worth heeding: Are you taking on more risk than you can truly stomach?

It reads like the fine print on a prescription drug label — and that’s the point. Many have forgotten the “side effects” of investing in equities.

The past 15 years have been a gift. The S&P 500 has compounded at 16% annually, making it one of the strongest 15-year stretches in history — rivaled only by the post-WWII boom and the late-90s tech mania. And when volatility did appear, it was often met with a howitzer of government support.

This April was a reminder that the market doesn’t owe us smooth sailing. Volatility is the price of admission. As financial author Morgan Housel puts it:

“The prize inside is superior long-term returns — but you have to pay the price to get the returns.”

A Normal Month — Statistically Speaking

April wasn’t unusual. Since 1928, the stock market has averaged a 10% drop nearly every year. Corrections of 20% or more happen about once every three years. These bouts of volatility aren’t predictable — but they’re inevitable. Whether sparked by erratic trade policy or another catalyst, they may feel rare in the moment, but they’re a normal and expected part of long-term investing.

Let April Be a Personal Stress Test

If this latest round of volatility caused meaningful anxiety or second-guessing, that’s not a failure — it’s a signal. Your portfolio might be misaligned with your true risk tolerance.

Chasing returns during bull markets is easy. But building a portfolio you can stick with when things get rocky? That’s the real test. The best investment strategy isn’t the one with the highest upside — it’s the one you won’t abandon when volatility returns, as it inevitably will.

Now’s a Great Time to Ask Yourself:

• Can I truly handle the swings that come with owning mostly stocks?

• Do I have the right mix of growth, stability, and liquidity?

• Is my current plan built to survive both good and hard years?

If you’re unsure, that’s exactly the kind of conversation we have with clients. Because risk tolerance isn’t theoretical — it’s emotional. And your plan should reflect that.