BY SUZANNE HAZLETT, MBA, CIMA®, CFP®
Volatility is never comfortable, and this latest round is no exception. As the news cycle heavily revolves around uncertainty related to tariff hikes, panicked headlines may have you feeling apprehensive and uncertain. Due to the recent market fluctuations, some investors may wonder whether they should adjust their investment portfolios.
Despite the overwhelming headlines, changes in government policy, and economic concerns creating the perception that significant changes are needed, your portfolio may need only marginal adjustments. While there’s a lot of emotion and fear in the market right now, consider pausing and not making investment decisions based on emotion. Instead, focus on the financial markets’ fundamentals and long-term prospects.
Market swings happen time and again. Pullbacks and corrections driven by economic and global events are not unusual and ultimately help sustain a healthy market that has experienced growth over time. There remain reasons for optimism about the economy and the equity market.
- A constructive S&P 500 year-end forecast of 6,375 would indicate a 13%+ gain from the March 12 close.
- Corporate fourth quarter 2024 earnings showed that U.S. equities remain strong.
- Earnings in 2025 are expected to grow 10% – 11% net of negative tariff impact.
- Corporate forward guidance has been positive.
- Recent technological sector weakness is inconsistent with Artificial Intelligence (AI) expansion, and further price declines present buying opportunities.
Times of market volatility can often trigger emotional responses in investors that can impact judgment and potentially affect long-term plans. While market volatility is mainly out of our hands, understanding how it occurs and the role of your long-term financial plan can help you weather the storm. Though often stressful, periods of volatility are an opportunity to connect with your advisor, enabling them to act as a sounding board for your concerns. By discussing current events in light of your overall financial plan with you, your advisor can provide a reassuring perspective to help you stay the course or readjust if your plan no longer aligns with your goals. Above all, maintaining perspective and investing intelligently are critical.
Suzanne Hazlett, MBA, CIMA®, CFP®, is a Certified Investment Management Analyst® and CERTIFIED FINANCIAL PLANNERTM professional. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC. HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker/dealer. 675 Sun Valley Road, Suite J1 + J2, K
