Atlantic Edge Insights
November 2025
Market Insight: Stock Market Corrections
“The stock market is designed to transfer money from the active to the patient.”
– Warren Buffett
Market volatility can feel unsettling, but it’s a normal and unavoidable part of long-term investing. Markets routinely experience pullbacks (see graphic below), and history shows these movements are not signs of a broken system but instead represent the cost of earning long-term returns. What matters most is staying focused on the bigger picture rather than reacting to short-term noise.
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Volatility is a normal and frequent feature of healthy markets. Markets routinely experience dips and mild corrections several times a year. Even severe corrections, like we saw in April, occur once every 2 years. These fluctuations reflect shifting news, sentiment, and economic data, not a permanent change in the market’s long-term trajectory. Recognizing that these fluctuations are common helps keep temporary setbacks in perspective.
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Some of the best days in the market occur right after the worst days. Historically, sharp rebounds often follow major sell-offs, and missing just a handful of strong recovery days can dramatically reduce long-term returns. Selling during volatility may feel safe, but it increases the risk of locking in losses while sitting out powerful rebound rallies, like April 9th, when the market increased by over 9% in a single day.
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Staying invested helps capture long-term growth. The market rewards patience. Over time, steady participation outperforms attempts to time when to be in or out. Remaining invested through ups and downs keeps you aligned with the market’s long-term upward trend, which has persisted despite wars and recessions.
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Today’s economy continues to show resilience. Consumer spending, employment, and corporate earnings have remained strong, even as markets move through normal bouts of volatility. The likelihood of a recession in the next 12 months remains very low according to Ned Davis Research.
Atlantic Edge Insights
Matthew Cochran, CFA
Robert Filosa, CFA
Ethan Caldarelli, CFA
Opinions expressed in this commentary may change as conditions warrant and are for informational purposes only. Information contained herein is not intended to be personal investment advice for any specific person for any particular purpose. We utilize information sources that we believe to be reliable but cannot guarantee the accuracy of those sources. Past performance is no guarantee of future performance; investing involves risk and may result in loss of capital. No graph, chart, formula or other device can, in and of itself, be used to determine which securities to buy or sell, or when to buy or sell such securities, or can assist persons in making those decisions. Consider seeking advice from a professional before implementing any investing strategy.