We wanted to check in with a quick market update and share what we’re seeing, what it could mean for the broader economy, and most importantly, what we’re doing to help protect your portfolio.
Yesterday, the Trump Administration announced new tariffs that will impact a wide range of imported goods. Once fully in effect, these measures would bring the U.S. to its highest average tariff rate in over 100 years, around 23%.
The markets reacted quickly:
- U.S. stocks opened sharply lower, with the S&P 500 down over 10% from its recent high
- Small-cap stocks are now in bear market territory
- The yield on the 10-year Treasury fell to 4.05% as investors sought safety
What does this mean going forward?
Markets are digesting the potential impact on economic growth, inflation, interest rates, and corporate profits. There’s growing concern that we could be entering a period of slower growth and higher prices — something economists refer to as “stagflation.”
But here’s the good news:
We are not sitting still.
We’re actively monitoring these developments and adjusting our outlook accordingly. Events like this are exactly why we build diversified portfolios using strategies like Separately Managed Accounts (SMAs). These portfolios are designed to:
- Avoid overconcentration in individual stocks or sectors
- Adapt as economic conditions shift
- Provide flexibility and transparency in how your money is managed
While much of the recent volatility has been tied to a handful of large tech stocks, our SMA-based approach spreads risk intentionally, giving your portfolio more stability during market stress.
It’s also worth noting that in response to the slowdown, the Federal Reserve may step in with rate cuts this year. And there are renewed discussions around additional tax cuts out of Washington, both of which could provide support for the economy and markets in the months ahead.
We’ll continue watching the data, adjusting as needed, and keeping you informed. If you’d like to talk through your portfolio or any concerns, just reach out. We’re here.
