Stocks have historically outperformed other asset classes, but recent volatility has been significant, particularly since the S&P 500 hit an all-time high on February 19. Following this peak, major indexes like the Dow and Nasdaq experienced sharp declines, with the S&P 500 facing a notable 10.5% drop over two days. Factors such as President Trump’s tariff policy, rising inflation risks, and high valuations are contributing to market headwinds, yet a recent strong performance from the S&P 500 has led some investors to remain optimistic about future gains.