April 2025 Investment update

By Jim Ewing on April 4, 2025

You may have noticed that U.S. equity markets recently experienced a correction, with more volatility in the past few weeks than we’ve seen since the bear market of 2022. With growing pessimism about financial conditions, and domestic and foreign policy evolving by the day, investors are wondering what, if anything, they should be doing in this chaotic time. 

It is a natural instinct to feel the need to do something to try to improve your circumstances when you see your asset values fluctuating and when the news seems to be overwhelming or frightening.  We empathize with how this may be making you feel. We understand your instinct to wonder whether you should be making a tactical change to your investment strategy in light of the headlines.  

Investors should confirm that they have sufficient liquidity 

First, it is important that your portfolio be risk-appropriate and investors should confirm that they have sufficient liquidity for any near-term spending needs that may arise.  

Market volatility is an expected part of the investing process 

Also, remember that market volatility is a normal and expected part of the investing process. We had seen very little volatility until recently while equity investors enjoyed two consecutive years of strong gains. That may make this volatility feel more alarming since it’s something we hadn’t experienced for several quarters.  

Our country is politically divided 

Our country is deeply divided, politically speaking. The new administration definitely has a starkly different vision from the prior one regarding how our country should be run, how we should engage our allies and trading partners, and the role we should be playing in global conflicts. Depending on your political views, your feelings about these policies and developments may range from positive to quite negative.  

Be aware of the influence of traditional and social media 

Traditional and social media, while bringing news and information to us at a speed never-before imaginable, can also serve to exacerbate these political divisions at the expense of possible common ground or interest.  

We continue to remain focused on the data and its financial implications for each of you. 

Through the turbulence of this political discord and evolving economic policies, we continue to remain focused on the data and its financial implications for each of you.  This way, we can help to ensure your portfolio is positioned appropriately for your risk tolerance and goals, and also look to take advantage of any opportunities that may present themselves. While most estimates are calling for a slowdown in global growth and an increase in inflationary pressures due to the uncertainty brought on by the trade war that President Trump has started, we would urge caution against overreacting at this time.  

Potential changes to interest rates, regulations and tax policy 

Economic conditions remain sound. It is far too early to assess the impact of tariff negotiations. As the year progresses, we will learn more about potential changes to interest rates, regulations, and tax policy. Each of these items has the potential to benefit investors who remain patient and disciplined. Thus, we encourage you to remain focused on your long-term goals. 

As always, we welcome you to reach out to our team with any specific questions or concerns. We stand ready to adjust strategy and advise as appropriate. Enjoy your spring!