The recent market decline, the largest since the drop resulting from the COVID shutdowns, was triggered by the implementation of new tariffs by the new administration. While these headlines can be alarming, we want to remind you that market fluctuations—especially during times of policy shifts—are normal and expected. Your portfolio was constructed to withstand economic, geopolitical, and market cycle shocks.
Remember, short-term volatility is the necessary price we pay for the privilege of earning long-term market returns.
Reacting to alarming headlines is never a prudent course of action in your long-term wealth strategy. This is particularly true when media outlets and commentators declare, “this time it’s different” or “this is unprecedented.” These phrases surface every time markets experience rapid declines.
And they’re not entirely wrong. The future is always uncertain, and global markets are constantly adjusting to “unprecedented” developments.
Almost every article or broadcast includes a dangerous shift toward making predictions about what will happen next. Anyone claiming to know with certainty what short-term stock and bond prices will do should not earn your trust. This is true even if they claim to have foreseen what just happened. If they truly knew, they wouldn’t be on TV discussing it—they’d be quietly capitalizing on their knowledge. The reality is that media personalities profit more from keeping your attention than from successfully investing themselves. They are in the entertainment business, not the financial industry.
These individuals sell an impossible promise: the illusion of control over an unknowable future. But neither they—nor anyone else—can predict market movements with certainty.
All previous market declines in your investing lifetime, and even those well before it, were temporary. Knowing that truth, you can forego the temptation to believe that, somehow, the current decline will be the first and only permanent one.
Making impulsive moves based on short-term predictions is one of the greatest risks to your long-term wealth strategy.
So, avoid contributing to the Fear Economy by resisting the urge to make sudden changes to your investment approach.
Rather than fixating on short-term volatility, we encourage you to maintain perspective. Market pullbacks create opportunities, and staying invested helps you remain positioned to potentially benefit from future recoveries.
If you have concerns or would like to discuss your investment strategy in greater detail, we are here for you. Reach out to our team to review your portfolio and ensure your financial goals remain on track.
Stay patient. Stay invested. Stay focused.
If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.
Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
10421 South Jordan Gateway, Suite 600
South Jordan, UT 84095
Sources:
1. http://go.pardot.com/e/91522/feed-html/96cs3f/2667893253/h/7sBZwURY65zWESYi5BTxb5bkFQYseIXjtO9C6yiiEaE
Disclosure: This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Fiduciary Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.
