2025 is a tumultuous year for financial markets, which understandably is rattling even the most experienced investors. While we can’t control investment returns or government policy, focusing on things that you can control may alleviate some of the anxiety.
1. Don’t panic, and remember, this too shall pass. There are scores of historical examples where surges in negative sentiment preceded above-average market returns. In the eight times when sentiment fell by 10% or more in a month, forward returns were higher is seven of them. Average returns 6 months later were +12%, and 12 months later +22%. No one knows that today’s declines will result in a similar experience, but markets usually find a way to rally over walls of worry.
2. Ensure savings accounts are working for you. As you are able, keep some extra cash on hand. Most big bank accounts have pitiful interest rates. Consider a high-yield money market, paying 3.50% or more, and link it to you checking account for ease of moving between accounts when needed.
3. Are your investments actively managed? This is not the best time to be a passive investor, or hold mostly index funds. Continued tariffs will create winners and losers. Market research will be very important to identify vulnerability and opportunity.
4. Review your investment allocation. Do you have investments that behave differently during phases of a market cycle? Do you have investments that are insulated from market gyrations to cover near-term spending needs? Integras Partners can help.
Talk to us and get some personal guidance.
Call us today to learn how we can help. 404-941-2800
