Market Rallies Aren't Always Recoveries: Why Staying Disciplined Matters
With the S&P 500 nearly entering bear market territory this year, it’s natural to wonder whether recent rallies signal a true recovery. History can offer a helpful perspective. During the 2007–2009 bear market, there were several short-term rebounds of 7–24%—but those gains came within a broader downtrend that ultimately led to a 57% decline at the low.
That context helps frame today’s environment. Just because the market bounces, it doesn’t mean the risk has passed. That’s why our RiskFirst® approach focuses on filtering out short-term noise, staying disciplined, and keeping your portfolio aligned with your long-term goals.
Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.
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