Market volatility has been high in recent days now that tariff negotiations are capturing many headlines. Here’s a short video from Chris “v” which you might find comforting. CLICK HERE FOR THE VIDEO
At the bottom of this page is a reference item from the video, the ICA Mountain Chart (A Share) from Capital Group. It shows a 90-year history through 2024 with historical headlines that had intra-year impacts on investment markets. For many of us, these events are nothing more than a distant memory today or perhaps points in time we’ve read about in history books or Economics class.
Key perspectives:
· Market index volatility does not necessarily equate to your portfolio’s volatility.
· Market movements are often speculative and not always results-driven.
· Patient investors are often rewarded long-term.
· Emotional decisions are often driven by fear or opportunity. On every open market security trade there is a party who is selling the shares and a party who is buying the shares. At this point, selling out of fear is not prudent whereas buying from a long-term opportunity standpoint could be.
· The quote in the V’s video, is credited to Bill B. “Fruit grows in the valley, not on mountain tops”; thank you, Bill. We agree.
· Tariffs are likely to cause inflation, eroding cash savings' purchasing power. Inflation historically also leads to growth and stock appreciation within equity markets. This is not the time to horde cash (unless it’s part of your financial plan’s short-term goals) or wait for things to look up; you will likely miss the rebound by market timing.
· We may not see another market entry point as good as where we stand today in the years ahead.
· We remain confident in our Wealth Management Platform (WMP) model allocations and the strategic rebalance completed last month. WMP is an actively managed portfolio in which we collaborate with a dedicated team of analysts and use leading technology from the world’s largest wealth management firm, Blackrock.
Our team will be reaching out this week to a small number of investor households for whom we believe recent changes in the markets are catalysts for portfolio adjustment. If you get a call or email from us, thank you for making a few minutes of time for our team.