In This Issue:
- After Taxes
- Market Update
- Staying the Course
After Taxes
Ready to maximize your 2025? Let’s start by taking a peek at your 2024 taxes. Go ahead and upload a copy of your 2024 tax return to your client portal—it’ll help us spot any tax planning moves that could work in your favor this year.
We achieve the best results when collaborating with your tax professional. If you’re comfortable doing so, please introduce us. Our goal is to ensure your financial plan is fully aligned.
Market Update
As of April 29, 2025*
- S&P 500 is down -5.07% YTD
- Dow Jones Industrial Average is down -4.25% YTD
Please keep in mind that while the S&P 500 and Dow Jones Industrial Average provide insight into a segment of the market, individual portfolio returns will vary due to diversified asset allocations designed to balance risk and opportunity across different asset classes.
*Year-to-date performance data provided by S&P Global and reflects the total return of the S&P 500 and Dow Jones Industrial Average indices.
Riding the Waves: Navigating Market Volatility and Long-Term Growth
Market fluctuations are a natural part of investing. Seeing the S&P 500’s intra-year declines alongside its calendar year returns can sometimes feel like a rollercoaster ride. But it’s important to remember that these fluctuations are often short-lived compared to the long-term growth potential of the market. For those contemplating selling out of the market during volatile times, consider these key points:
1. The Timing Dilemma: When to Get Back In?
Predicting market movements is notoriously difficult. To successfully time the market, you would need to make two consecutive correct decisions: when to sell and when to buy back in. Missing either of these timings can significantly impact your returns. The risk of being wrong in either decision can outweigh any benefit of trying to time the market
2. Missing the Rebound
Market rebounds can be sudden and substantial. Historically, periods of decline have often been followed by rapid recovery. By sitting on the sidelines, you risk missing out on these potential upswings. Staying invested allows you to participate in any such rebounds, which can be crucial for your long-term returns.
3. Long-Term Growth Potential
Remaining invested means continuing to benefit from the compounding effect of market growth. Moving to the sidelines not only means missing any potential rebounds but also forgoing all future growth on that invested capital. Over time, this can lead to a significant shortfall in your investment portfolio.
Understanding Market Fluctuations
A chart illustrating intra-year declines against calendar year returns often shows that despite temporary downturns, the market has historically trended upwards. This reinforces the importance of a long-term perspective and the benefits of staying invested through volatile periods.
Navigating market volatility requires patience and a focus on long-term objectives. Staying the course can often lead to better outcomes than trying to time the market’s ups and downs.