MP020: A Steady Framework to Navigate a Turbulent Market with Jason Ranallo

This week, we’re applying our facts-frame-approach concept (introduced in last week’s podcast) to a couple of themes making headlines: tariffs and market volatility.

 

News Theme One: Tariffs and Historic Market Reaction

On April 2, the administration announced sweeping tariffs on a range of imported goods. After an initial market decline of nearly 20%, a 90-day tariff pause was issued, and markets quickly rebounded — posting a 9.5% single-day gain, one of the highest on record.

 

This highlights two key frameworks: markets don’t move uniformly (underscoring the value of diversification) and attempting to time (in and out of) the market can have major downsides. Historically, missing just the 10 best days over 20 years could reduce returns by nearly half.

 

News Theme Two: Market Volatility and Uncertainty

Markets have seen increased daily swings, with the S&P 500 down around 10% year to date.

Volatility like this, while uncomfortable, is not unusual. Historically, and on average, 10% market corrections happen about once a year, and deeper declines (20+ percent) occur roughly every three years. Staying invested through turbulent periods has historically rewarded patient investors, as the strongest rebounds have been clustered around the steepest declines.

 

Throughout it all, we remain grounded in these four frameworks:

 

·      Time Horizon: Time in the market is more effective than timing the market.

·      Real Returns: Focus on outpacing inflation.

·      Diversification: Prepare for multiple scenarios.

·      Compounding of Assets: Growth on growth, over time.

 

At Vector, we believe that having a thoughtful framework not only helps make sense of today’s headlines, but also keeps us steady when the next story breaks.

-

Get started at Vector: vectorwealth.com/start

-

vectorwealth.com/regulatory

V25104237

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice. 

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed. 

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.