MARKET UPDATE
Xerxes Nabong, CFP®, CDFA®
Philip M. Maliniak, CRPC®
Margaret V. Little, CFP®, CDFA®
Nicole Brown-Griffin, AFC®, CFP®, CDFA®, EA
Aaron Petty
Jacinta Gauvin, AAMS®
Hampton Roads: (757) 394-3486
Greater Phoenix: (480) 687-9339
Orange County: (949) 660-8869
Continued Market Volatility – What Should I Be Doing?
On Friday at 10:38 a.m. in Arizona, my family and I welcomed our second child into the world—Luca Cruz Hutchins Nabong. I was up at 3 a.m. to get to the hospital, but while attending to this incredible moment, my phone kept lighting up with headlines warning of major market turbulence. Sunday brought more of the same: news in the afternoon hours that stock futures were set to plunge Monday morning. Since then, we’ve seen quite the market ups and downs with the S&P 500 swinging from 4,835 to 5,246—a 411-point shift—landing at 5,089 at the time of this writing (11:08 a.m. in Arizona, 2:08 p.m. on the east coast). Needless to say, we’re in volatile times. By the way, pics of baby boy to come later.
Many of our clients have asked, “What should I be doing?” Before answering that, please know: Wealth Avenue will continue to communicate with you clearly and consistently. Until the dust settles—or better said, until there’s less uncertainty—we’ll keep sharing timely insights and guidance.
Now, back to the market’s swings… What we’re seeing is clear: markets are hypersensitive to tariff headlines, and even the faintest hope of a delay can send stocks soaring. This back-and-forth volatility is uncomfortable, but not unusual in times of policy uncertainty.
So, what should you be doing right now? We understand that staying invested—or putting new money to work— can feel counterintuitive during times like these. But with a steady approach, here are some practical, level-headed strategies to help you navigate the current environment with confidence:
- Shift to systematic investing – If you’re making lump-sum retirement contributions, consider spreading them out monthly to benefit from dollarcost averaging.
- Rebalance your portfolio – A portfolio previously at 50/50 stocks and bonds may now be 45/55. Rebalancing allows you to buy equities at discounted prices and return to your intended mix.
- Use volatility as opportunity – Historically, steep declines have preceded some of the strongest market rebounds. Stay engaged.
- Harvest tax losses – If you hold taxable positions at a loss, now might be a good time to offset capital gains elsewhere in your portfolio.
- Consider intermediate-term bonds – With yields down and prices up, bonds are once again doing their job—offering stability and income.
- Build your cash cushion – If you don’t have 3-6 months of expenses in a high-yield savings account, now’s a great time to establish or replenish that reserve.
- Reassess your risk tolerance – Do your investments still align with your time horizon and risk tolerance? If you’re unsure, let’s take a fresh look together. Volatile periods like this are ideal for reassessing your strategy—not necessarily overhauling it.
- Stay emotionally disciplined – Trying to time the market almost always leads to missed opportunities. The best days often come after the worst ones.
The trigger for this latest bout of volatility? We all know this… The White House’s new tariff plan—minimum 10% on most imports, 34% on Chinese goods, and 25% on cars. A rumored delay sparked a brief market rally this morning, but confirmation of the policy sent stocks sharply lower. It’s been back and forth since… Once again, markets are proving highly reactive to any tariff-related headlines.
Still, several major financial institutions are urging longterm calm:
- JPMorgan Chase CEO Jamie Dimon called the tariffs a “self-inflicted headwind” but reaffirmed his confidence in the U.S.’s long-term economic resilience.
- Invesco acknowledges short-term disruption but sees continued global opportunity, especially in undervalued international markets.
- Capital Group believes the broader growth trajectory remains intact and emphasizes staying diversified.
- Franklin Templeton sees the tariffs as a temporary shock, not a structural threat to longterm fundamentals.
- U.S. Bank expects continued earnings growth and encourages patient, diversified investing.
History shows that fear-based decisions rarely serve investors well. Diversification across sectors, regions, and asset classes remains your strongest defense. Sectors like manufacturing, infrastructure, and innovation— especially AI—may even benefit from these shifts.
As always, we’re here to guide you through it all. If you’re feeling uncertain or want to review your plan, just reach out. We’ll continue watching closely and sharing what we know. In the meantime, stay the course, rebalance when needed, and focus on your long-term goals.
Your Team at Wealth Avenue,
