Market drops may feel alarming — but financial advisers say staying calm and focused is the key.

The recent rollercoaster on Wall Street has many investors anxious, but history shows this isn’t out of the ordinary. Big market drops happen — and rebounding from them is part of the long-term investment journey.

The S&P 500 has dropped over 16% since peaking in February, largely due to rising uncertainty around President Trump’s tariffs. Harsh trade measures recently announced have rattled investor confidence, reminding many of the early days of the 2020 COVID crash.

While some hoped tariffs were just a bargaining chip, the fear now is that they might stick — and that’s shaken both businesses and households trying to plan for the future.

Market dips of 10% or more happen about once a year, and while they’re tough to stomach, they’re part of a normal market cycle. Some say the market was overheating anyway, driven by just a few Big Tech companies — the so-called “Magnificent Seven” — that carried much of the S&P 500’s gains last year.

It’s tempting, especially when losses start piling up. But pulling out of the market can lock in losses permanently — and miss out on the recovery that often follows.
Historically, the market has bounced back from every major downturn — including the Great Depression, the dot-com crash, and COVID-19.

Experts say unless you need the money within the next few years, it’s best to stay put.

“No one can time the market,” says WalletHub CEO Odysseas Papadimitriou. “Trying to guess the perfect moment to buy or sell is a losing game.”

Possibly — but not out of panic.
Many experts recommend revisiting your diversification strategy. If most of your investments are tied to U.S. Big Tech, for example, you may be more exposed than you think.

“A diversified strategy can’t prevent the punches, but it can help soften the blows,” says Brian Jacobsen of Annex Wealth Management.

Financial advisers suggest looking at more resilient sectors like healthcare, utilities, and consumer staples, which tend to perform more steadily during economic uncertainty.

Younger investors may be facing their first major downturn — but they also have a huge advantage: time.
With decades ahead, young investors can ride out volatility and reap long-term rewards.

“Now is not the time to make emotional decisions,” says Bankrate’s Stephen Kates. “Re-anchor to your long-term goals and stay focused.”

Older investors don’t have as much time to recover from losses — but even in retirement, your money might need to last 30 years or more.
Experts suggest limiting withdrawals during downturns and discussing strategy with your financial adviser.

“You may want to slow down spending temporarily and ramp it back up once markets recover,” advises Neel Mukherjee, CIO at TIAA Wealth Management.

The honest answer? No one knows.
Markets are unpredictable — and while this can feel unsettling, trying to time your way around it often does more harm than good.

So take a deep breath, stay diversified, and don’t let fear make the decisions. The market has weathered many storms — and if history is any guide, it will rise again.

Source: AP News – Think twice before bailing out of the stock market, financial advisers say

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Banking Error Credits Customer with Trillions

Citigroup mistakenly credited $81 trillion to a customer’s account instead of the intended $280, highlighting ongoing operational challenges within the bank. The error, which occurred in April 2023, took hours to be detected and reversed, according to a report by the Financial Times on Friday.

How the Mistake Happened

The massive transaction error slipped through multiple layers of oversight:

• A payments employee initially missed the mistake.
• A second official, responsible for reviewing the transaction, also failed to catch the error before it was processed.
• A third employee finally identified the issue 1.5 hours after processing, leading to a reversal several hours later.

No Funds Left the Bank

While the mistake was alarming, no money actually left Citi. The bank reported the incident to both the Federal Reserve and the Office of the Comptroller of the Currency (OCC) as a “near miss”—a term used when a bank processes the wrong amount but successfully recovers the funds.

In a statement to Reuters, Citigroup assured that its “detective controls“ quickly flagged the error, leading to an immediate correction. The bank emphasized that neither the client nor Citi suffered any financial impact from the mistake.

Recurring Near Misses at Citi

This wasn’t an isolated incident. Internal reports reveal that in 2023 alone, Citi recorded 10 near misses involving $1 billion or more, down slightly from 13 cases in 2022.

Despite declining to comment on these figures, Citi acknowledged its ongoing investment in improving compliance, risk management, and data governance.

Citi’s History of Regulatory Fines

Citigroup has faced significant regulatory penalties for its operational shortcomings:

• July 2023: Fined $136 million for slow progress in fixing compliance issues.
• 2020: Hit with a $400 million fine for risk and data failures.

Citi’s CFO, Mark Mason, recently stated that the bank is prioritizing technology upgrades and better regulatory reporting to prevent such errors in the future.

The Bigger Picture

The $81 trillion mistake serves as a stark reminder of the risks in high-volume financial transactions. It underscores Citi’s ongoing struggle to improve oversight while managing its complex banking operations.

With regulators watching closely, Citigroup’s ability to strengthen its compliance systems will be crucial in avoiding future banking blunders of this scale.

Source

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CFPB Employees Told to Cease Work on Financial Abuse Cases

The Consumer Financial Protection Bureau (CFPB)—the nation’s top consumer financial watchdog—has been ordered to halt nearly all operations, including oversight of big banks, payday lenders, and financial institutions, according to an internal email obtained by CNN.

Acting Director Issues Sudden Directive

On Saturday night, Russell Vought, the newly appointed acting director of the CFPB, sent a bureau-wide email stating:

“Effective immediately, unless expressly approved by the Acting Director or required by law, all employees, contractors, and other personnel of the bureau shall…cease all supervision and examination activity.”

This unprecedented move effectively suspends CFPB’s ability to protect consumers from financial abuse, leaving $18 trillion in consumer debt unmonitored, according to a former CFPB official who spoke to CNN anonymously.

A Step Beyond Prior Restrictions

This order goes even further than a previous directive issued by Treasury Secretary Scott Bessent on February 3, which had already halted rulemaking, court filings, and public communications. Vought’s new directive adds supervision and enforcement to the freeze, leaving American consumers without critical financial protections.

Funding Freeze and Bureau Oversight

Vought also announced on X (formerly Twitter) that he had notified the Federal Reserve that the CFPB would not be drawing its next round of funding, claiming the agency’s $711.6 million balance was “excessive” and not “reasonably necessary” for operations.

House Democrats Push Back

In response, dozens of House Democrats sent a letter to Treasury Secretary Scott Bessent, urging him to rescind what they called an ‘illegal stop work order’. However, as of now, the CFPB has not responded to requests for comment.

Government Takeover of CFPB Systems

Following Vought’s appointment, officials from Elon Musk’s Department of Government Efficiency (DOGE) reportedly deleted the CFPB’s official X account and gained administrative access to bureau systems, including:
Website content management system
Back-end operations
Personnel directories

What This Means for Consumers

With the CFPB effectively sidelined, financial institutions now face reduced oversight, potentially leaving millions of Americans vulnerable to predatory practices. As uncertainty looms, lawmakers and consumer advocates are closely watching for the next steps in what could be a major shift in financial regulation policy.

Source

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Lloyds Banking Group has announced plans to close 136 more branches as customers increasingly shift to online banking.

Details of the Closure Plan

• Branches affected:
  • 61 Lloyds Bank branches
  • 61 Halifax branches
  • 14 Bank of Scotland branches
• Closure timeline: Begins in May 2025, with completion by March 2026.

Why Are the Branches Closing?

A spokesperson for Lloyds Banking Group explained:

“Over 20 million customers are using our apps for on-demand access to their money, and customers have more choice and flexibility than ever for their day-to-day banking.”

With a significant shift toward digital banking, the bank says fewer people rely on physical branches, leading to the decision to downsize its network.

Impact on Staff & Customers

• Staff from affected branches will be offered roles at other branches or in different parts of the business.
• Customers will still be able to use any Halifax, Bank of Scotland, or Lloyds branch, as roughly a quarter of all branches are closely located to each other.

Lloyds’ Shrinking Branch Network

• Current number of branches: 932
• Previously announced closures (by end of 2025): Down to 892
• With the latest closures (by March 2026): Down to 756

The high-street banking landscape is rapidly evolving as more people move towards mobile and online banking, making physical branches less essential for day-to-day transactions.

Source

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