Recent market movements have understandably sparked concern.With headlines dominated by trade tensions, rising tariffs, and geopoliticaluncertainty, it’s natural to feel uneasy about your investments.
However, we want to offer some perspective and insight tohelp you navigate this period with confidence.
Understanding the Current Volatility
Markets have seen increased fluctuations in recent weeks dueto:
• Renewed trade disputes and tariffdiscussions
• Global supply chain concerns
• Shifting interest rateexpectations
• Mixed economic indicators frommajor global economies
While these events are headline-grabbing, it’s important toremember that market volatility is not new—it’s a normal part of investing.What matters most is how we respond to it.
A Look Back: Tariffs and Market Performance
Historically, markets have shown resilience in the face oftariff-related tensions. For example:
• 2018–2019 U.S.–China TariffDisputes: Despite rising tariffs and a highly public trade war, the S&P500 gained approximately 28% in 2019, rebounding strongly after a volatile2018.
• 2002 Steel Tariffs: Whilethe S&P 500 declined following the Bush administration’s tariffs, this wasmore due to the lingering effects of the dot-com collapse. Markets recovered in2003.
• 1970s–1980s ProtectionistPolicies: Even amid broad trade restrictions, markets grew steadily overthe long term—highlighting the strength of patient investing.
Key takeaway: Tariffs can create turbulence, butrarely derail long-term growth when investors stay the course.
Tariff Goals:
The current administration believes that global trade dealshas taken advantage of the United States which has prompted the recent increasein tariffs to other nations around the world. Ultimately, the United States isattempting to close the gap in the difference of tariffs being charge to theUnited States. To provide some perspective on the different tariffs inpartnership with the United States, we have listed five below.
1. Vietnam
a. Tariff Charged to the U.S.A: 90%
b. U.S.A tariff charged to Vietnam: 46%
2. China
a. Tariff charged to the U.S.A: 67%
b. U.S.A tariff charged to China: 34%
3. European Union
a. Tariff charged to the U.S.A: 39%
b. U.S.A tariff charged to EU: 20%
4. Taiwan
a. Tariff charged to the U.S.A: 64%
b. U.S.A tariff charged to Taiwan: 36%
5. Japan
a. Tariff charged to the U.S.A: 46%
b. U.S.A tariff charged to Japan: 24%
Reference Link: Trump Reciprocal Tariff Chart: Full List of Countries Impacted - Newsweek
Putting Recent Volatility in Historical Context
Since 2020, markets have experienced some of the mostsignificant downturns of the 21st century:
• Covid-19 Crash (2020): S&P500 retraction of -34%
• Inflation Crisis (2022): S&P500 retraction of -25%
• Tariff Crash (2024): S&P 500retraction of -20%
The volatility that we have witnessed over the past fiveyears has been unprecedented in comparison to historical market trends.
This historical perspective reinforces the importance ofhaving a long-term strategy, professional advice, and a diversified portfolioto weather such periods.
Tips to Weather the Current Volatility
1. Stay Invested: Trying to time the market oftenleads to missing the best recovery days.
2. Diversify Across Asset Classes: Spread yourinvestments to reduce exposure to individual risks.
3. Focus on Long-Term Goals: Let your financialplan—not headlines—guide your decisions.
4. Revisit Your Risk Tolerance: If recent swings feeltoo intense, let’s talk about rebalancing.
5. View Pullbacks as Opportunities: Market dips canoffer chances to buy high-quality assets at better valuations.
Final Thoughts
While we can’t control headlines or market movements, we cancontrol how we respond. Our approach remains grounded in long-term discipline,diversification, and a commitment to your financial goals.
Every portfolio has a sense of ‘seasonality’ in which theinvestments will go through cycles. Much like a tree in the mid-west, therewill be times when new buds of opportunity will appear, times of prodigiousgrowth, times of harvest, and times when the tree will look barren through thewinter. Just because the tree has lost its leaves during the winter doesn’tmean it’s time to uproot the tree. Instead, with patience we know the seasonwill change and new growth will appear. These things are all cyclical. We viewthe portfolio’s we manage in a similar fashion as a growing tree. Our role isto know when to water it, when to harvest, when to fertilize, and when toprune. With patience and care while sticking to your long-term strategy, we areconfident to remain fruitful in the years ahead.
If you have questions or feel uncertain, we’re here for you.Let’s talk about your portfolio, your goals, and how we can provide clarity andconfidence.
Ready to learn more? Get started by
requesting a complimentary initial consultation whenever it’s convenient for you.
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