There has been a flood of the wave of attention-grabbing headlines lately. It's hard to miss news about Big Tech, tariffs, and contradictory opinions on how the economy is going to do. Even some of the smartest clients we work with, and we have a number of seasoned retirement savers, can feel uncomfortable with the news today.
We hear of companies like Apple, Nvidia, Amazon, and Tesla (companies that have long driven market trends) have all seen their earnings expectations fall up and down this quarter.1 Meanwhile, we see a the flipping and flopping of tariff conversations with our nations international partners, which could leas to increased costs costs (inflation) for both businesses and the people.2
A common question we (naturally) will get in busy news cycles like we have now is: Should I be doing something different?
I often bring up the quote of the infamous Yogi Berra (forgive me for quoting a Yankees legend) ... "it's hard to make predictions, especially about the future".
You could also remember, "uncertainty is uncertain". That's just a natural part of investing. While past performance is not indicative of future results, there are practical steps you can take to avoid letting anxiety dictate your financial decisions:
1. Remember that new articles are trying to get a reaction from you – News outlets thrive on drama, but short-term market movements often don’t reflect long-term trends. Avoid making investment decisions based on fear-driven news cycles.
2. Focus on your personal plan – Your portfolio is built around your financial goals, risk tolerance, and time horizon - not today’s headlines. If your strategy was solid last month, it’s likely still solid today.
3. Remember that volatility is needed for economic growth – History has shown that markets fluctuate, with periods of volatility often followed by recovery over time (however, future outcomes are not guaranteed). Selling out of fear may lock in losses, while patient investors tend to benefit over time.
4. Don't make emotionally driven Amazon purchases or investment moves – If you’re feeling anxious, resist the urge to react impulsively. Instead, talk to your advisor (that’s what I’m here for!) before making any major decisions. (This is not me calling my wife out after looking at our Amazon cart...)
5. Ask questions and call – If you’re concerned about how market conditions impact your investments, let’s discuss it. If you want to get on the calendar, please give us a call..
We have a bias to believe that 2025 will bring economic shifts, evolving government policies, and have us question the US's international relationships. But that's nothing new. Markets have weathered far worse, and long-term investors are usually rewarded for staying patient. (Over the last 97 years, 94% of 10-year periods in the U.S. stock market were positive.3)
Let's connect if you have specific concerns or life changes that could impact your financial strategy. Your investment plan should give you confidence, not stress.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional.