By Brandon Miller–
Lately, the stock market has been a bit of a rollercoaster, with a mix of factors—geopolitical tensions, inflation worries, and tariffs—causing some wild swings. Over the past few months plus the S&P 500 has taken a dip, shaking up investors who haven’t seen many pullbacks of this size since 2022, when the index dropped -25% at one point. But here’s some perspective: in 22 of the past 42 years, the S&P 500 saw double-digit drops at some point during the year—yet in 14 of those cases, the market still finished the year strong.
With all this turbulence, it’s natural to feel a little uneasy about your portfolio. But here’s the good news: market ups and downs are nothing new, and staying disciplined can make all the difference. One of the best ways to navigate volatility is through regular rebalancing: adjusting your investments to keep your portfolio aligned with your long-term goals.
Why is rebalancing so important? As markets move, some assets gain value while others decline, which can throw your target allocation out of whack. If left unchecked, you could end up with more risk than you’re comfortable with. Plus, volatility can create opportunities—like harvesting capital losses for tax benefits or strategically buying assets that are temporarily out of favor.
Rebalancing keeps emotions in check by taking the guesswork out of investing. It’s tempting to react to headlines and short-term swings, but a structured approach helps investors avoid knee-jerk decisions that could derail long-term success. Sometimes, rebalancing means selling high-performing assets to buy ones that are struggling, but history shows that sticking to a strategy, rather than chasing trends, is what really pays off.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.
Brio Financial Group is a registered investment adviser. SEC Registration does not constitute an endorsement of Brio by the SEC nor does it indicate that Brio has attained a particular level of skill or ability Advisory services are only offered to clients or prospective clients where Brio Financial Group and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Brio Financial Group unless a client service agreement is in place.
Brandon Miller, CFP®, is a financial consultant at Brio Financial Group in San Francisco, specializing in helping LGBT individuals and families plan and achieve their financial goals. For more information: https://www.briofg.com/
Money Matters
Published on April 26, 2025
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