Sleep Less, Risk More: Why Monday's Market Dip Demands Clear Thinking

March 10, 2025  | Season 5 | Episode 8 Market turbulence has arrived, and understanding the driving forces behind it is essential for making sound investment decisions. As the Trump administration rapidly implements new economic policies, markets are responding with heightened volatility, raising important questions about portfolio diversification and long-term strategy. The administration"s goals—bringing manufacturing jobs back to America, growing the US economy, maintaining tax cuts, and reducing international financial commitments—sound promising. However, markets are increasingly concerned about the lack of a clear, surgical implementation plan. Treasury Secretary Besant"s comments about a potential "detox period" and President Trump"s acknowledgment of a coming "transition period" have only intensified uncertainty, with JP Morgan economists now putting the chance of recession at 40%. This uncertainty is triggering significant global economic realignments. Germany has announced major expansions in defense and infrastructure spending, abandoning its traditional fiscal conservatism. China is implementing stimulus measures to boost domestic consumption. These shifts are drawing capital away from US markets to international opportunities, with Chinese large-cap stocks up 29% since July. For investors, this volatility requires careful consideration. The current week presents additional challenges as Daylight Savings Time disruption increases the risk of poor financial decisions—statistics show higher incidences of stroke, cardiac events, and financial mistakes during this period. If your portfolio feels uncomfortably positioned, now is the time to speak with your financial advisor about rebalancing. Despite current turbulence, maintaining perspective is crucial. While US markets may be down year-to-date, the S&P 500 has nearly tripled over the past decade. History shows that maintaining diversified exposure to equities through broad-based funds has consistently rewarded patient investors who can weather short-term volatility. What adjustments should you consider in your investment strategy as global economic power dynamics shift? The answer may lie in thoughtful diversification while maintaining the conviction to hold through market uncertainty. ** For informational and educational purposes only, not intended as investment advice. Views and opinions are subject to change without notice. For full disclosures, ADVs, and CRS Forms, please visit https://heroldlantern.com/disclosure ** To learn about becoming a Herold & Lantern Investments valued client, please visit https://heroldlantern.com/wealth-advisory-contact-form Follow and Like Us on Youtube, Facebook, Twitter, and LinkedIn | @HeroldLantern