Feeling Uneasy About The Market? Our Perspective

It’s been hard to miss the wave of attention-grabbing headlines lately. News cycles have been dominated by concerns over Big Tech’s earnings, trade tensions, and a potential economic slowdown in 2025. Even seasoned investors can feel uneasy when faced with headlines like these. Additionally, the CPI for January came in a little "hotter" than expected, at 3.0%, compared to expectations of 2.9%. However, the market shrugged that news off and is hovering near an all-time high.

?

Tesla, Apple, and Amazon (companies that have long-driven market trends) have all seen their earnings expectations fall this quarter. Meanwhile, the presidential administration’s increasing focus on tariffs over tax cuts could affect costs for businesses and consumers.

When uncertainty piles up, it’s natural to ask: Should I be doing something different?

The truth is that uncertainty is part of investing. While past performance is not indicative of future results, there are practical steps you can take to avoid letting anxiety dictate your financial decisions:

?

1. Take a Step Back from the Headlines – News outlets thrive on drama, but short-term market movements often don’t reflect long-term trends. Avoid making investment decisions based on fear-driven news cycles. Have you ever noticed that news outlets make their font size LARGER when there is negative news, not when there is positive news? Well, they do this to spark fear and grab attention.?

2. Focus on Your Personal Plan – Your portfolio is built around your financial goals, risk tolerance, tax situation, and time horizon - not today’s headlines. If your strategy was solid last month, it’s likely still solid today. That being said, we often find that potential clients don't realize how much risk they are taking, or the opposite, they are taking on too little risk. A collection of stocks and/or bonds does not mean you have a financial plan in place. It may mean you have a "hodgepodge" if you don't have a clear plan or strategy around your investments. In addition, potential clients usually have blindspots in their tax and estate plan that they don't even realize. This could be costing them a lot more than normal market volatility and drawdowns...

3. See Volatility as a Natural Part of Investing – History has shown that markets fluctuate, with periods of volatility often followed by recovery over time (however, future outcomes are not guaranteed). Selling out of fear may lock in losses, while patient investors tend to benefit over time. Quite frankly, it's not a matter of if a -30-50% market drop will occur again, but rather when.?We know that type of market drop is coming at some point, whether it's 3 months from now or 5 years, and your portfolio should be designed to withstand those declines, especially leading up to and in retirement.

4. Check Your Emotions Before Making Moves – If you’re feeling anxious, resist the urge to react impulsively. Instead, talk to your advisor before making any major decisions. Having a long-term financial plan will keep you on track and help avoid emotional moves.

5. Ask Questions & Stay Engaged – If you’re concerned about how market conditions impact your investments, our team is available to help answer your questions. Bottling up questions is the worst thing you can do. You should stay informed but don’t act out of fear.

?

2025 will bring economic shifts, evolving government policies, and global uncertainty. But these are not new challenges. Markets have weathered far worse, and long-term investors are usually rewarded for staying patient. (Over the last 97 years, 94% of 10-year periods in the U.S. stock market were positive.3).

?

However, will the next 10-year period provide returns like what I've seen over the past 10 years? History shows us that the answer is probably not. That means that your portfolio should be designed to weather both good and bad market conditions to meet your long-term objectives.

Bottom line, your investment plan should give you confidence, not stress. Our financial planning and investment management process helps solve this problem.?

Are you interested in learning about our "PROFIT" process? Click here to learn more and schedule a time with our team: https://www.clarkgroupam.com/our-process

Sources:

1. Yahoo Finance, 2025 [URL: https://finance.yahoo.com/news/big-tech-grip-market-shows-175717723.html]

2. Bloomberg, 2025 [URL: https://www.bloomberg.com/news/articles/2025-02-10/prioritizing-trade-wars-over-tax-cuts-creates-risk-for-us-economy]

3. Capital Group, 2023 [URL: https://www.capitalgroup.com/individual/planning/investing-fundamentals/time-not-timing-is-what-matters.html]

4. TalkSport, 2025 [URL: https://talksport.com/nfl/2881393/cooper-dejean-eagles-caitlin-clark-patrick-mahomes-super-bowl.com]

?

Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional.

clarkgroupam.com/disclosure