If you find yourself worried, uncertain, or anxious about the stock market – you are not alone. The market hates uncertainty and when sweeping changes comes from the political landscape, the market reacts accordingly. Pullbacks, like the one we are currently experiencing, are part of the investment cycle and often happen after a period of speculative growth. The current market drop is approaching corrective territory for the S&P 500 if we measure from the peak, though is within a couple of points of where markets sat in November as the election approached. The election rally has now dissipated, and the effects of tariffs and changing policy are in the spotlight.
As the election approached last year, we sought to neutralize any political exposure within portfolios. Specifically, we removed a portion of stock market exposure, in favor of adding to a more balanced approach. The goal was to provide a buffer for any short term concerns, and ultimately remain optimistic as we shift our gaze long term.
For more perspective on the pullback, we share thoughts from LPL in their post titled Pullback Perspective posted on Monday. That post was followed by Tuesday’s post titled A Case for Staying Invested – reminding investors to stay the course through the uncertainty. Across our research partners, the long-term horizon is optimistic despite the volatility we are experiencing at present.
Best,
Garrett
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