“I’m 62 years old, and my wife is 57. We both work full time. We have 401(k)s, three investment properties, our residential home, and enough cash to pay off our mortgage. We want to retire in five years. We’ve never worked with a financial advisor but are feeling a bit overwhelmed. We’re hoping to understand how you would approach the matter with us.”
Q1 2025 Quarterly Market Review: An Analysis of Market Dynamics
For Q1 2025, US stocks experienced a notable decline, with the Russell 3000 Index down 4.72%. This contrasted sharply with international developed markets, which rose by 6.20%, and emerging markets, which gained 2.93%. Global real estate exhibited moderate growth, up 1.37%. Bonds were similarly mixed, as US bonds increased 2.78%, while global bonds outside the US showed slight weakness, declining by 0.17%.
Trade policy gained prominence as the Trump administration's proposed tariffs sparked global market uncertainty. Interestingly, primary tariff-targeted markets such as Canada, Mexico, and China posted positive stock market returns, echoing patterns from Trump's previous term where contentious trade discussions did not consistently depress target-country stock markets.
Navigating Market Volatility: The Importance of a Disciplined Investment Approach
After a torrid start to 2025, the US stock market has given back most gains in February. Recent volatility has led some to question if the bull market that began in October of 2022 is coming to an end. I long ago gave up trying to outsmart the market, but I have learned over the years that it's during uncertain times that adhering to a disciplined investment approach becomes essential.