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We know this has been a challenging stretch in the markets, and many of you are wondering: “How much further could this go?” It’s a fair question—and one we’re keeping a close eye on.

Some of the recent market volatility is tied to concerns over new tariffs that may take effect soon. If they do, analysts estimate they could reduce corporate earnings, which might justify further market declines. That said, markets don’t move in straight lines—and policy decisions can change quickly. Even a hint of delay or negotiation around the proposed tariffs could send stocks bouncing back sharply, as we briefly saw earlier this week.

So where does that leave us?

We believe the most important thing right now is to stay grounded and not make emotional decisions. Markets go through ups and downs—this is part of long-term investing. What matters most is how we respond.

Here’s how we’re thinking about it:

• Diversification is doing its job: Our portfolios are down just over 4% year-to-date, and they have remained positive over the past 12 months. That’s encouraging in a market that’s seen sharper swings in certain sectors.
• The market is functioning well: Unlike during the COVID selloff, where parts of the market essentially froze, today’s markets remain orderly and liquid.
• Opportunities are emerging: Some asset classes—like bonds and international stocks—are holding up well. U.S. stocks have pulled back significantly, which could create attractive entry points ahead. At Baker Boyer, we monitor levels closely and may recommend rebalancing portfolios if prices become especially compelling.

For those feeling more cautious amid current market conditions, a more conservative approach may offer peace of mind—such as ensuring that bond exposure helps provide a buffer against short-term fluctuations, while still aligning with long-term goals.

Above all, it’s important to remember that successful investing isn’t about avoiding volatility altogether, but about navigating it with a steady hand. Staying informed, maintaining perspective, and leaning on time-tested strategies can make all the difference. As markets evolve, staying engaged and adaptable helps investors remain focused on what matters most: long-term financial well-being.

If you have questions or concerns, don’t hesitate to reach out to your advisor. Now more than ever is the right time to build or revisit your financial plan—and at Baker Boyer, we’re here to help you every step of the way. Let’s talk.