Context Is Key with Market Volatility
May 27, 2026 Author: Tess Downing, MBA, CFP®, Complete View Financial
The path forward is clearer when you keep the long view.
Recent headlines may make it feel like markets are entering unfamiliar territory. Volatility has increased amid geopolitical tension, inflation concerns, and interest rate uncertainty, raising understandable questions, especially for those in or nearing retirement. However, when we step back, the broader context tells a more reassuring story.
In late February, the market’s volatility index (VIX) was near its long-term average before rising in response to recent events. While that increase reflects short-term uncertainty, it’s important to remember that these spikes are a normal part of market behavior.
Volatility Has Risen but Remains Far Below Many Periods in the Past
VIX Index Levels Since 1990
Data from 1/1/1990 – 3/31/2026. Source: CBOE. The VIX Index tracks the expected 30-day future volatility of the S&P 500 Index.
In the historical context, today’s volatility is not unusual. There have been many periods over the past few decades, such as the financial crisis and the COVID-19 pandemic, where market volatility was significantly higher than what we’re experiencing now.
At the same time, many of the economic indicators driving headlines today, like inflation, oil prices, and interest rates, remain within ranges we’ve seen in just the past few years. While conditions are uncertain, they are not unprecedented.
Periods of Heightened Volatility Since 2020 Have Not Prevented Growth from Global Stocks
Source: Morningstar. Data from 1/1/2020 – 3/31/2026. Past performance is no guarantee of future results.
Importantly, markets have continued to reward long-term investors despite these periods of volatility. Since 2020, the S&P 500 has delivered more than 120% in cumulative returns, with global markets also posting strong gains despite multiple downturns along the way.
For those in retirement or approaching it, this serves as an important reminder: short-term market movements are expected, but a well-diversified, long-term strategy is built to navigate them.
Staying focused on your plan, rather than reacting to headlines, remains one of the most effective ways to protect and grow your wealth over time.