Last month, we noted that rising uncertainty was already starting to spill into the markets. That uncertainty has now escalated with a new round of tariff announcements and swift retaliatory measures. Markets are no longer reacting just to the possibility of a trade conflict—they’re reacting to the reality of one unfolding.
The result? A sharp spike in volatility. Stocks have dropped significantly in a short period of time, as investors try to make sense of a moving target and price in the long-term impact of a developing trade war.
It’s moments like these that make headlines feel overwhelming. But markets like this are inevitable. That’s exactly why we focus so intently on risk management when building portfolios. It’s easy to enjoy the ride during a bull market, but a strategy that takes risk into consideration shows its value when things get choppy.
While stocks are taking a beating, bonds are doing the opposite, increasing in value as investors seek safety. Volatility creates opportunity, and we are actively taking advantage of this selloff, liquidating bonds that have increased in value and using the proceeds to buy stocks that have gotten cheaper.
We don’t know if all the volatility is behind us, but we’re confident in the strategy we’ve built for you: to deliver the returns you need, with as little risk as possible.
So, take your eyes off CNBC and rest assured BCWM has you covered through this volatility. And we’ll talk more about what’s happening, and what we’re doing, in our upcoming webinar on April 30th.
This information is provided for general information purposes only and should not be construed as investment, tax, or legal advice. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.