2025 was one of the wildest years in recent memory for investors. Between Trump's return to the presidency, Liberation Day tariffs, AI hype, and Bitcoin predictions that fell flat, there was no shortage of headlines demanding your attention. But if you made predictions about market returns at the start of the year, chances are you were way off.
While Bitcoin remained relatively flat and commodities like silver and gold had explosive runs (before crashing back down), the real story was in global equities. After a decade dominated by U.S. stocks, 2025 marked the first year since 2017 where both developed international markets and emerging markets beat the S&P 500.
Emerging markets delivered an impressive 34% return, making it the third-best single year in the last decade. Developed markets weren't far behind at 27%. Even closer to home, the TSX outperformed the S&P 500 with a 32% return compared to 17.8%.
This was a powerful reminder that global diversification isn't just a theoretical concept. It's essential protection against recency bias and home country preference.
April 2, 2025 will be remembered as Liberation Day, when Trump announced sweeping tariffs that sent markets into a tailspin. Over just five days, the S&P 500 dropped 21%. By April 8th, it was down 15% for the year.
Panic set in. Headlines screamed. Some investors wondered if they should take action.
Then on April 9th, Trump paused the tariffs and the market surged 9.5% in a single day. By May 13th, the S&P 500 was positive again. And by June 27th—just 12 weeks after the bottom—the market hit new all-time highs. It was the second-fastest recovery period in 75 years.
The lesson? The market is a device for transferring money from the impatient to the patient. Staying invested beats trying to time the market.
New investors who started in 2023 have been spoiled. Strong returns in 2023, 2024, and 2025 have been well above historical averages. Over the last 99 years, the S&P 500 has averaged a 10% annual return. But here's what most people don't realize: in only seven of those 99 years did the market actually return between 8% and 12%.
The last decade has seen average returns closer to 16%. That's the bumpy road to the long-term average. Some years are up 30%, others are down 20%, but over time it evens out.
It's also worth noting that not all recoveries happen as quickly as 2025. The dot-com crash took seven years to recover. The 2008 financial crisis took four years. COVID's recovery took five months. Liberation Day's recovery took 12 weeks. These fast bounces aren't the norm—they're the exception.
As you head into the new year, here are three questions worth asking yourself:
1. Check your portfolio allocation. What percentage is in equities versus bonds? Are you taking on the right level of risk based on your time horizon and risk tolerance? Are you overweight in U.S. stocks because of recency bias?
2. Understand your investment strategy. Can you articulate how and why you're invested? Having a written investment plan makes it much easier to stay the course when volatility hits.
3. Ignore the noise. Tariff threats, political drama, recession predictions, AI hype, crypto bubbles—none of it will matter in 10 years. The most sensible approach is to tune it out and stay in your seat.
2025 proved once again that predicting markets is a losing game. But sticking to a sensible, globally diversified strategy? That's a winning formula.
📊 Take the Financial Clarity Assessment → https://alignwealth.scoreapp.com
📸 Follow Scott Campbell on Instagram → www.instagram.com/scottcampbell.fp
🌐 Learn more about Align Wealth → www.alignwealth.ca
Financial Advisors for Chiropractors
You’ve mastered aligning the body. What would it feel like to bring that same mastery to your money?
Where chiropractors get real answers, clear systems, and financial peace of mind
© Chiro Money Show. All Rights Reserved. Designed by Converting Attention.