Bear Markets, Sell Offs and Reflecting on Asset Allocation – April 2025

Bear Markets, Sell Offs and Reflecting on Asset Allocation – April 2025

by | Apr 8, 2025 | blog

How you handle a market sell off. Revisiting your financial plan and investment policy statement. We’re entering a turbulent time in the markets. Seeing negative returns on your statement isn’t just unsettling—it triggers the same fight-or-flight response in our brain as physical danger. Studies show that losses feel 2 to 3 times more painful than gains feel rewarding. That’s why a 20% drop feels devastating while a 20% gain feels only moderately satisfying. It’s natural to feel this way. But reacting emotionally to investment pain often leads to poor financial decisions. Before making changes to your portfolio, it’s critical to revisit your financial plan and asset allocation strategy.

Special Update: Reciprocal Tariffs and the Market Reaction

Special Update: Reciprocal Tariffs and the Market Reaction

by | Apr 3, 2025 | blog

On April 2, President Trump announced new tariffs on nearly all major trading partners. These tariffs are “reciprocal” in that they correspond to tariffs each country imposes on U.S. goods and are on top of previously announced duties. The average tariff rate across countries is 25%, with rates for some as high as 49%. While the implementation of these tariffs was widely telegraphed by the White House, the level and scope are greater than many investors and economists expected. The immediate market reaction was negative, with the S&P 500 declining over 3% and the 10-year Treasury yield declining to around 4%.