Tariff Turmoil
Is Your Portfolio a Casualty of the Current Climate?
By Blaise Stevens, Managing Member, Strategic Advisory Partners
The financial markets have certainly been making headlines lately. The impact of evolving trade policies, like the recent tariff adjustments, has introduced a layer of volatility that can leave investors feeling uneasy. If you’ve been watching the fluctuations and wondering about the best way forward, you’re not alone.
These periods of market change often reveal the different approaches financial advisors take in managing their clients’ portfolios.
You might be asking yourself:
“Has my advisor proactively addressed these shifts?”
“Do I understand how my portfolio is positioned to weather this uncertainty?”
At Strategic Advisory Partners, these are precisely the questions that drive our approach. For our valued clients, we believe in maintaining transparent and timely communication. This includes regular monthly updates, as well as proactive correspondence in response to significant market events, such as the volatility we observed on April 3rd. On that day, the S&P 500, NASDAQ, and Russell 2000 experienced significant drops, underscoring the importance of the strategic adjustments we had already implemented.
A Proactive Stance, Not a Reactive Response
We understand that market volatility can be unsettling. However, we also believe that a well-thought-out strategy, implemented before significant market shifts, is crucial for long-term success. Our recent communication to clients highlighted several key steps we took to position their portfolios defensively:
- Strategic Rotation to Value: Recognizing potential market shifts, we proactively increased exposure to large U.S. value companies, historically known for their stability during downturns.
- Prudent Reduction of Small-Cap Exposure: We decreased holdings in more volatile small-cap companies and reallocated those funds to high-dividend paying stocks, offering a blend of reduced volatility and consistent income.
- The Importance of International Diversification: Maintaining our international equity allocations has provided valuable diversification and helped to mitigate some of the recent domestic market pressures.
- The Anchoring Role of Bonds: Our consistent allocation to bonds provides a crucial element of stability and income during equity market fluctuations.
These weren’t last-minute reactions; they were deliberate decisions based on our ongoing assessment of the economic landscape and potential risks. We believe that this proactive approach, coupled with consistent and transparent communication, is a cornerstone of responsible financial stewardship.
Beyond “Wait and See”: The Value of Informed Action
You entrust your financial advisor to act in your best interest. In times of market uncertainty, this means more than simply reporting the news. It requires a deep understanding of the potential impacts and a willingness to make strategic adjustments to protect and grow your assets. Furthermore, it necessitates keeping you informed every step of the way.
If your advisor hasn’t communicated a clear strategy in response to recent market volatility, or if you feel unsure about how your portfolio is positioned, it might be time to ask some critical questions.
What to Consider:
- Has your advisor proactively communicated about the recent market shifts and their potential impact on your portfolio?
- Can they clearly articulate the specific strategies they’ve implemented to navigate this volatility?
- Do you understand the rationale behind their investment decisions and how they align with your long-term financial goals?
- Are they readily available to address your concerns and answer your questions?
- Does your advisor provide regular, transparent updates on your portfolio and their strategic outlook?
At Strategic Advisory Partners, we believe in transparent communication and proactive management. We understand that navigating today’s economic climate requires a thoughtful and adaptive approach. Our commitment is to provide our clients with the clarity, perspective, and strategic guidance they need to feel confident in their financial future, regardless of market fluctuations.
If you’re seeking a partnership that prioritizes proactive strategies and clear, consistent communication in a dynamic market environment, we invite you to connect with us. Let’s discuss how our approach can help you navigate the shifting sands with greater confidence.
