We have received quite a few questions from clients regarding the budget deficit and our increasing national debt. How much of a problem is our nation’s fiscal trajectory? What about Moody’s recent downgrade of the U.S. credit rating? And what is the impact on investment portfolios? Let’s tackle these questions one at a time.
Markets hate uncertainty.
Since President Trump’s April 2 “reciprocal” tariff announcement, the news has been moving fast.
Every pencil has an eraser for a reason.
On April 2, President Trump announced new tariffs on nearly all major trading partners. These tariffs are “reciprocal” in that they correspond to tariffs each country imposes on U.S. goods and are on top of previously announced duties.
“All that glisters is not gold.”
William Shakespeare, The Merchant of Venice
Sometimes, even gold doesn’t “glister” as much as we think. Gold prices have reached all-time highs lately amid worries of economic uncertainty. But is adding it to a portfolio a solid approach, or a fool’s errand?
Clearly 2025 has not started out the way most investors would have wanted. The stock market has stumbled with the S&P 500 declining year-to-date. While tariffs have garnered the most attention, investors are also concerned about mixed economic signals including weak consumer confidence, hotter inflation, government worker layoffs, and more.
It looks like some tariffs will be imposed this week. Imposing a tariff is like using a chainsaw instead of a paring knife to cut an avocado; crude, messy, and generally ineffective.
Diversified Portfolios Can Help Investors Weather Global Policy Changes
The Importance of Balance As We Welcome 2025
Welcome to 2025! As my wife often says, the days are long, but the years are short. There’s something beautiful about winter’s chill balancing with the warmth and sunshine of spring and summer. While I love summer, I’m a winter person. I’ve been skating as long as I can remember and have been on skis since I was three. Winter also means firing up my Ariens snow blower to tackle the snowbanks left by the plows at the end of the driveway.
Investment Commentary: Q1 2025
As spring begins, so does a season of renewal and growth. The first quarter of 2025 certainly roared in like a lion, with tariffs and trade dominating the spotlight.