Welcome to our April 2025 Market Update!
Welcome to this month’s update…and while we normally talk about the prior month, I’d be remiss if we didn’t address the early April market action as well.
In March, stocks dropped 5-3/4% on fears of a potential recession and as a result of upcoming tariff’s.1
Since the calendar closed on the first quarter and we’ve learned that this fair trade “push” utilizing tariff’s is the real deal, they resulted in markets selling off. So, what do we do in an environment like this?
First, let’s think of a couple positives and let’s recall something I said years ago: money doesn’t just die when we see a market decline, it moves. Bond markets rallied heavily during recent stock market declines.2 I feel this is where the money was moving.
On another positive note, I don’t believe this is a systemic problem like we saw back in 2008. This has been brought on by policy, and may wrap-up as quickly as it began. It may not, and that is when we turn to history. According to Blackrock, out of the 15 worst months since 1950 for stocks, 12 of the periods were substantially higher a year later.3
As more information comes available, I feel the easier it may be to decipher what to do next. Historically, stock corrections of 10-20% per year are normal and typically result in sharp rebounds over the next 3-, 6- and 12-month periods.4
As I conclude, I want to share that while this is a unique time for us it may not be vastly different than past volatile periods for the market. I am confident in the diversified portfolios we strive to construct and if you have any specific questions, please reach out to me as I’m happy to help answer them.
Successfully,
Tim Truebenbach, CFP®
Senior Vice President – Financial Advisor
Disclaimers and Sources
1 Source: Thomson ONE Reuters, 4/7/2025, S&P 500
2 Source: CNBC, Bond Yields tank around the world, 4/7/2025
3 Source: Blackrock, Three’s always a reason to sell stocks, 250102T-0125
4 Source: LPL Research, Invest for the Long Term, 3/12/2025
5 Source: CMI Gold and Silver, Gold Spot Price, 3/7/2025
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. Indexes are unmanaged and cannot be invested in directly.
Stock investing includes risks, including fluctuating prices and loss of principal.
Asset allocation does not ensure a profit or protect against a loss.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Bonds are subject to availability, change in price, call features and credit risk.