401(k) Markets & Economic Update: Q2 2025

Second Quarter 2025 Market and Economic Update

Welcome to the Second Quarter 2025 market and economic update. We really want you to watch this video, so thanks for your time. We’re glad you’re here.

Transcript:

Let’s start with our favorite chart.  I know you’ve seen this before….

Since 1980 the S&P 500 index return was positive in 34 of the last 45 years, that’s 75% of the time. 

Our lowest pullback so far as you can see has been 19%, but year to date we’re currently down 6% so this is good.

These Intra-year declines (that’s the largest price drop from peak-to-trough during a calendar year) of more than negative 10% are quite normal.

Looking at the chart, the average intra-year pullback is 14.1%, though you can see some pullbacks aren’t that bad and some are way worse.  But here’s the thing, if you’re 5+ years from retirement, you want those big drops because that means you can buy the markets at a cheaper price.

We can’t emphasize that enough, that if you are adding to your 401(k) every pay period, then when markets are down you are buying funds cheaper, so keep going!

In this next chart it shows that the international markets are currently cheaper.  This is a good reason to be in the Target Date funds where allocations #1 are age appropriate and #2 look outside the US for opportunities.

Don’t let market volatility get you off track as you seek to achieve your long-term goals.  Please reach out to us if you have any questions!  See you next time!