S&P 500's Wild Ride: History Shows Market's Resilience

The S&P 500's roller-coaster ride in 2025 echoes historical market trends. CNN's Erin Burnett and financial expert Paul Hickey discussed the market's 15% drop and subsequent recovery, comparing it to similar events in history. Hickey pointed to 1982 under Paul Volcker as a key parallel, a time of 13% interest rates and widespread criticism of the Federal Reserve's actions. "The 1982 period is fascinating," Hickey stated, "because Volcker, though considered the gold standard of central bankers, faced intense criticism." The discussion also touched on the political fallout, with President Carter labeling Volcker's policies as 'ill-advised'. Despite the volatility, Hickey emphasized that the market ultimately recovered in all four comparable historical periods, offering a message of long-term economic resilience. This historical perspective provides valuable insights for investors and policymakers alike.