03/14/2025
Hey there, how have you been doing? With recent market events, we understand it can feel uneasy running into some turbulence that we haven’t felt in a little while. Volatility in the markets is a completely natural event and one that is mitigated with a strong plan and portfolio.
Over the last few weeks, we have talked with several clients who have begun taking cash off the sideline to take advantage of this opportunity of a quick downturn and get into equities. As Warren Buffett famously said, “As an investor, you love volatility. You love the idea of wild swings because it means more things are going to get mispriced.”
We have also talked with a few clients who wished to mitigate their risk further and move from the market into bonds due to market concerns and reduce risk. These thoughts and feelings are completely valid as well and if it helps you rest more knowing that your portfolio is more stable that is completely understandable.
We recognize that the volatility experienced in the market over the last few weeks is directly related to the tariffs, and we do see them as temporary, being used as a negotiation tactic that will eventually pass. Tariffs are also nothing new, as they have been around since the time of George Washington.
We have likewise experienced +20% returns in the last 2 years, so it is reasonable to briefly give some of that growth back. It is an inherent part of the long-term reward process. The market in these times creates higher lows and much like a balloon letting out some air, the opportunity to let in new/more air is then created.
Overall, we remain positive about the long-term outlook and resiliency of the market, even if the current environment feels a little rocky. Quality planning and quality investments are key successes in making sure that you are on track to meeting your goals.
Should you wish to have a conversation, we would be happy to talk about what is on your mind and adjust as needed for continued growth and prosperity 😊. “The individual investor should act consistently as an investor and not as a speculator.”- Ben Graham.
Best,
Jacob Nienaber, CFP®
