As we conclude the first quarter of 2025, I wanted to provide you with an overview of recent market developments and discuss strategies to navigate the current investment landscape.
Market Overview
The first quarter presented challenges for U.S. equities, with the S&P 500 Index experiencing a total return of -4.3%, marking its weakest quarterly performance since Q3 2022. Notably, the “Magnificent 7” stocks—Apple, Nvidia, Microsoft, Amazon, Tesla, Alphabet, and Meta—collectively contributed to the index’s decline, with each posting losses. Tesla led with a significant drop of 35.8%, and Nvidia fell by 19.3%. In contrast, seven of the eleven sectors within the S&P 500 delivered positive results, with the Energy sector leading at a 10.2% gain.
JP Morgan’s quarterly Guide to the Markets provides an excellent under-the-hood view of the S&P 500.
Avantis also shared their recent newsletter and field guide, reinforcing some key themes we believe in:
✅ The importance of maintaining a globally diversified portfolio
✅ Staying disciplined through both highs and lows
✅ Avoiding the temptation to chase short-term trends or news cycles
CLICK HERE to access this full report.
Here’s what we want you to remember: we’re long-term investors and not short-term speculators. And that means our strategies are proactive because they’ve stood the test of time; we don’t need to react to every headline. After all, the speculators who are reacting need to be right not once, but twice.
We continue to recommend:
- Diversification: Ensure your portfolio is well-diversified across various sectors and asset classes to reduce exposure to any single market segment.
- Tax-Loss Harvesting: Consider offsetting capital gains by realizing losses in underperforming assets, which can be an effective method to manage tax liabilities.
- Regular Portfolio Reviews: Schedule periodic reviews to assess your portfolio’s alignment with your financial goals and make adjustments as necessary.
I am blessed to frequently hear from clients about how they feel more confident because of the long-term plan we’ve put into action. Our investment philosophy is built to weather this kind of environment. Just like tornadoes and hurricanes, volatile markets can be managed with adequate planning.
One final reassuring thought: The speculators are glued to the screen and sweating bullets during every dip. The investors are out living life, confident in the strategy we’ve built together.
If you’re hearing noise from the media, friends, or social media that’s making you second-guess your plan, please contact me so we can address your concerns. I’m here to help.
CLICK HERE to make an appointment.
