The November Trending Report from Kevin Roskam of USA Financial provides a thoughtful and timely reflection on the emotional and strategic realities facing investors as 2025 nears its close. It has been a year filled with economic twists, political noise, and market volatility, and Roskam uses this moment to remind investors and advisors alike that while market trends come and go, the ability to remain disciplined amid short-term chaos is what truly determines long-term success. He begins with a relatable client story that captures the emotional side of investing. A client called him in a panic, ready to move all their investments into a money market account after watching a dire news segment about the economy. While this is a request advisors hear often, it highlights an important behavioral truth—investors rarely make big moves out of logic. Instead, they react to fear. Roskam’s response to the client wasn’t to say no, but rather to ask a simple question: “Why now?” That question opened a discussion about timing, emotion, and the long-term plan already in place. Through conversation and review, the client realized nothing fundamental had changed about their goals, and that reacting to a single piece of news could easily derail years of progress.
This story sets the stage for one of the most important themes of the report: short-term emotions kill long-term plans. Roskam emphasizes that volatility is not only normal but expected. He uses market history to put this into perspective, showing that dips and corrections are an inevitable part of investing. On average, the S&P 500 experiences seven pullbacks of 3% or more each year. A 5% correction happens roughly three and a half times annually, and even a 10% “moderate correction” typically occurs once a year. These numbers are not anomalies—they are the rhythm of the market. By normalizing these movements, Roskam reminds investors that the market’s short-term fluctuations are the price of long-term growth.
Roskam goes on to explore why this volatility can feel different lately. Using data on the correlation between individual stocks and the broader S&P 500 index, he points out that today’s market has reached a historically low level of correlation. This means that the 500 companies making up the S&P 500 are not all moving in sync, largely due to the outsized influence of a handful of major tech names—the so-called “Magnificent Seven,” which include Apple, Amazon, Google, Nvidia, and others. These few stocks have driven much of the market’s return in recent years, masking the weaker performance of hundreds of other companies. The result is a market that looks healthy on the surface but is actually uneven underneath.
That imbalance is one reason Roskam argues that active management has become increasingly important. When markets are highly correlated, passive investing—simply buying the index and holding—can make sense. In those periods, diversification within the index provides enough exposure to the overall trend. But in times like these, when some sectors are thriving and others are struggling, active management can add real value by identifying opportunities and managing risk in a more targeted way. Roskam acknowledges that passive investing works well for younger investors with long time horizons. Someone in their 20s has decades to ride out market cycles, and low-cost index investing can be an excellent foundation. However, for investors in their 50s, 60s, or already in retirement, the stakes are different. The timing of withdrawals, income needs, and protection from drawdowns become much more critical. In those cases, relying solely on a “set-it-and-forget-it” index approach may not make sense. Active management—when done thoughtfully—can help reduce volatility, provide flexibility, and align investment strategies more closely with an investor’s time horizon and comfort level.
The report also highlights the importance of communication between advisors and clients, especially during turbulent times. Markets can be unpredictable, but uncertainty doesn’t have to lead to panic. Instead, it should lead to conversation. Advisors must ensure that clients understand why their portfolios are structured the way they are, what role each investment plays, and how different strategies interact under varying market conditions. Roskam stresses that talking about trends in isolation doesn’t help unless clients know how those trends affect their actual holdings. The true value lies in connecting the dots—linking market behavior with portfolio strategy and, ultimately, the client’s goals.
As Roskam reviews the short-term and long-term trends in the S&P 500, he notes that despite October’s volatility, the overall one-month trend heading into November remains positive. Even with short-term pullbacks, the broader trajectory of the market still supports staying invested. This is where having active managers in place becomes critical. By using different evaluation periods—daily, weekly, or monthly—active managers can react to shifts in the market more dynamically. This layered approach allows portfolios to adapt without overreacting, smoothing out volatility while maintaining exposure to growth opportunities.
Another key takeaway from Roskam’s analysis is the danger of trying to time the market. The same emotional impulse that makes someone want to “go to cash” when things look uncertain also makes it difficult to know when to re-enter. Getting out is easy; getting back in at the right time is nearly impossible. Roskam points out that over the past five years, there have been multiple moments where it might have felt good to sell, but doing so would have cost investors valuable gains when the market rebounded. By removing emotion and relying on structured, rules-based money management, investors can avoid making decisions that feel good in the moment but hurt over the long run. This is one of the main reasons USA Financial uses third-party money managers—to take emotion out of the equation and maintain discipline through market noise.
Roskam concludes the November report by reinforcing the importance of diversification, not just across asset classes but also across timeframes and management styles. In a volatile environment, it’s crucial that not every part of a portfolio reacts the same way at the same time. Having multiple managers with different evaluation schedules creates a portfolio that can adapt more intelligently to market changes. The goal isn’t to eliminate volatility—it’s to use it productively, turning what feels like chaos into opportunity.
Ultimately, Roskam’s November Trending Report delivers a clear message: trends matter, but emotions matter more. Understanding historical context, market structure, and the purpose of each strategy allows investors to stay grounded even when the headlines scream otherwise. The market will always have its ups and downs, but as long as investors remain focused on their long-term goals, work with their advisors to stay informed, and embrace active management when it makes sense, they can navigate uncertainty with confidence. As Roskam says, it’s not about avoiding corrections—it’s about being prepared for them. By staying disciplined, maintaining perspective, and trusting in a well-constructed plan, investors can turn volatility from a source of fear into a stepping stone toward lasting financial success.
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The Trending Report is a monthly commentary series that explores topical trends taking place within the current market and economy. It aims to provide clarity and encourage Advisors and Investors as they navigate and make sense of current market conditions. The ongoing battle between short term emotions and the commitment to long term investing is real. This series seeks to help Advisors and Investors focus their energy on long term success. Hosted and published by the investment professionals at USA Financial, each episode offers valuable commentary and analysis into various economic factors and market movements. By tuning in, our host breaks down complex topics into easy-to-understand information.
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