Politics & Money

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Markets Are Reacting

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I won’t sugarcoat it - this has been a tough time for the markets.

After President Trump’s sweeping rollout of new tariffs, U.S. stocks had their worst single-day drop since the early pandemic on Thursday, April 3rd. (1) The S&P 500 fell nearly 5%, the Nasdaq tumbled close to 6%, and the Dow dropped over 1,600 points. (2) Concerns over a full-scale trade war sent global markets reeling and investor confidence took a sharp hit. Selling continued Friday.

From major retailers to energy companies, few sectors were spared. At the same time, rising tariffs on auto imports and goods from countries like China, Vietnam, and the European Union are fueling fears of inflation, reduced consumer spending, and even the possibility of a recession. (2)

It’s no surprise if you’re feeling uneasy. You're definitely not alone.

Here’s what I want you to remember: times like these are why we build diversified portfolios and personalized plans. You are not invested directly in the S&P 500 or the Nasdaq. Instead, your portfolio is designed to span a range of asset classes, sectors, and geographies - and we intentionally include strategies and instruments beyond equities that are intended to help cushion against volatility.

While market indexes may grab headlines when they swing, your strategy is built with long-term goals in mind, not short-term reactions.

That said, this downturn is real - and it’s unsettling. So here’s what we can do:

  • Focus on what we can control, like how we react, how we stay diversified, and how we manage risk.

  • Avoid the urge to panic sell, which historically has been one of the costliest investor mistakes.

  • Stick to your plan, which was designed with the realities of both good and bad times in mind.

  • Your plan was also designed to include tactical "tilts" that can help during choppy markets. 

  • Remember that these tariff talks are still relatively new and we don't know how things will play out yet.

It’s also worth noting that even on days like this, there are bright spots. Not every sector is falling, and some defensive areas like consumer staples have held up well. This reinforces why diversification matters - because we don’t try to predict the future, we prepare for it.

♾️

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Tax & Policy Uncertainty

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Now that the election is over, what will the new administration prioritize in the new year? Here are a few things we’re watching in the months ahead:

The debt ceiling debate may reignite in early 2025.

The debt ceiling, the cap on the total amount of debt the U.S. can hold, has been suspended as part of a deal made in the last Congressional fight. (1) When the cap returns in January, it may kick off a fresh round of debates and draw attention to the more than $35 trillion the U.S. holds in debt.

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Trump Wins: And Markets?

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President Trump has won reelection; what does that mean for investors?

Let's discuss.

As of this writing, Republicans have won the White House and a Senate majority, and may win a House majority. (1)

Markets reacted to the news by rallying to new record highs. (2) Does that indicate they see president-elect Trump's promises as favorable for stocks? Or is it simply a reaction to an end to election-related uncertainty? History can offer us some clues.