Friday marks the end of a wild and chaotic week of trading for markets. The week started with tariff scares, seeing markets seesawing between gains and losses before two consecutive days of finishing down both days. Early trading on Wednesday saw flat results until news emerged that tariffs would be paused for 90 days. The result was a trading session with one of the highest one-day positive returns ever recorded. Thursday saw a portion of those gains given back, and as we seek to close the week, the session has started with more muted activity.
This week has reminded us of the benefits of balanced positioning. We will always seek to limit losses, so that we do not have to chase returns and change our investment philosophy. After all, we win more by losing less.
Our partners at Goldman Sachs share their commentary with Perspectives on Market Volatility. The biggest takeaway from the piece is a reminder that the best and worst days tend to cluster. Making significant changes in a strategy during turmoil leaves us vulnerable to timing the market. Panicked selling early this past week would have removed the ability to have a recovery when it comes. Market drops like we have experienced over the past two months are typical of market cycles. This event will eventually end, and that certainty of knowing the market will normalize is welcoming news.
Best,
Garrett
Perspectives on Market Volatility HERE
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