I had a great discussion this week with clients about the constant nature of risk in investing The topic came up as we were talking about the wild ride we’ve been on in 2025 and how the market has once again reached all time highs – despite a laundry list of risks that remain well known and well understood.

The list we came up with included uncertain path of interest rates, unresolved trade negotiations, global unrest, US deficit (high and growing), potential for more unexpected administration actions, midterm elections, and market valuations. And of course, there are many future risks we aren’t even aware of right now.

That led to the obvious question. Taking into account all of the risks we can see (and those we cannot), is it a good time to still be an investor? In a word – yes. The truth is, there have always been – and will always be – risks when it comes to investing. It is the “price we pay” for the opportunity to compound wealth over time and meet our longer-term goals. As an investor, it’s essential to understand that and proceed anyway. It’s equally important to structure your portfolio (and your attitude towards investing) in such a way that you can complete your most important task as an investor – staying invested despite the risks.

The specific actions you will have to take to mitigate and manage risk will vary, depending on a whole host of factors such as your investing horizon, liquidity needs, other sources of cash flow, distribution rate, ability to handle market downturns on an emotional level, etc. It’s worth giving these serious thought now and taking appropriate action, at a time when markets are relatively calm.

Sometimes a picture does more than words ever can – and this chart is a one such picture. It illustrates all the “risks we should have seen coming” since 1989. During that time, $1 invested in the S&P 500 has grown 38x. You can see it has not been a straight march higher – there are definitely valleys in between the peaks. However, the trend line is clear – up and to the right – even with all the risks in between. No reason to think the future will be any different.