Q1 2025 The Latest Stock Market Dip

By Matt Johnson, CFA® and Andy Nugent, CFA®

The stock market has experienced volatility and a massive downswing over the last week resulting in a concern about your investments. We know that for many of you, this is your nest egg you’ve built over many years. We feel the responsibility to ensure we manage your portfolio to meet the goals you have for your wealth.

The impact of tariffs and the uncertainty of how they will affect the economy has sent investors running for the sidelines. Is this justified?

The true impact of the tariffs is uncertain. What effect will they have on a company’s true value? Will the tariffs be in place a month from now? Are they a negotiation tactic? No one knows. There is noise from the media that further ignites fears.

By taking a step back and looking at history, we realize the stock market has been going straight up for two years. Volatility is healthy for the market, if not required.

“…. but this time is different,” you might say. We would never tell you with 100% certainty that it is not. However, the stock market is resilient. Looking back through history, we see several “this time is different” moments. You can point to the dot com bubble, 9/11, the banking crisis, and more recently Covid.

These events all saw the market pull back sharply, and after each serious and impactful moments, the markets recovered. In the case of Covid, the market recovered the very same year and ended higher. The chart below is from Sensible Financial Planning.

Earnings matter. Fundamentally, nothing has changed with the companies in your portfolio. Earnings have been mostly good, and we have a few weeks before we get into the next earnings season. Your portfolio has a tilt towards quality companies, and we are confident earnings will see us through.

While, we never try to time the market, we do see dips like this as a buying opportunity. As always, here is your reminder that your portfolio is invested for the long haul and while we understand nervousness, it’s important we stick to the long-term plan. This too shall pass.

If you need to talk about things or want to review your financial situation, please reach out, we are more than happy to spend some time with you discussing things.

Matt Johnson, CFA® Andy Nugent, CFA®

Sage Capital Advisors, LLC is a Securities and Exchange Registered Investment Advisor. Sage Capital Advisors is headquartered in Sioux Falls, South Dakota. Advisory services are only offered to clients or prospective clients where representatives of Sage Capital Advisors are properly licensed or exempt from licensure. This market commentary is solely for informational purposes and should not be construed as investment advice, it is only intended to provide education about the financial industry. Historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial

charges, the deduction of investment management fees, or the impact of taxes, all of which would have the effect of decreasing historical performance results. Indices are unmanaged and cannot be invested in directly. It should not be assumed that your account holdings correspond directly to any comparative indices. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered unless a client service agreement is in place.