It’s not a secret that the stock market has been turbulent in recent weeks. The S&P 500 dropped to six-month low point in March 2025, and closed out the quarter on March 31st having bounced back somewhat. Still, the month of March was challenging, with most major US Stock Indexes clocking in their worst quarter since 2022.
Many financial advisors are bracing for more volatility in the coming months, with recent tariff announcements this month making investors nervous.
How Does Market Volatility Work?
We often forget that markets don’t rise and fall on their own – investors make decisions based on either strategy or a reaction to what’s happening in the world. If people say that “markets are nervous” about upcoming tariffs, for example, what it means is that investors are nervous and making decisions accordingly.
What Are Tariffs, and Why Do Investors Care?
With all the talk of tariffs in the news, it’s leaving many investors asking:
What, exactly, are tariffs? And should we be concerned?
Tariffs are essentially taxes imposed on imported goods. When a country implements tariffs, importers are required to pay additional fees when bringing specific foreign products into the country. These costs are typically passed along to businesses and, eventually, to consumers.
When tariffs are implemented, they can affect different sectors in various ways:
- Companies that rely heavily on imports may face higher costs
- Domestic manufacturers might benefit from reduced foreign competition
- Consumer goods prices could increase as businesses pass costs down
An Advisor’s Perspective
When the market fluctuates, investors often turn to financial experts with questions. Our clients are no different!
While we’ll never pretend to have a crystal ball when it comes to the markets, we do pride ourselves in always being prepared for every eventuality. If the last quarter has shown us anything, it’s that anything can happen.
However, our team incorporates several key approaches in our wealth management strategy:
We build risk insulation and the possibility of volatility into our financial plans. We don’t wonder if a recession is going to hit—we prepare for market downturns and future recessions as an eventuality. Market volatility is part of the reality when it comes to investing.
That’s why we help all of our clients develop a unique approach to risk in their portfolios based on their goals – when they want to retire, their lifestyle, and their personal risk aversion.
For example, if a client is in retirement, they may be less able to withstand a significant amount of risk in their portfolio because they’ll need to access their assets right away. On the other hand, a client who has 30 years until retirement has a longer time to “bounce back” from a market downturn or recession and take on more risk in their portfolio.
We believe in time in the market, not timing the market. When the market starts to flag, you may be tempted to “time” the market. They use different “strategies” to try and predict what will happen next across various asset classes and make decisions to buy and sell based on those predictions. But, here’s what we’ve seen repeatedly: market timing rarely (if ever) works!
In fact, investors who time the market are playing a dangerous game. Take a look at this graph from Vanguard Investment Advisory Research Center:
When investors time the market, they have to get the timing “right” twice – both when they sell (missing market drop-offs), and when they buy back in (to take advantage of market highs). There’s an incredible amount of risk here, especially when we know that investors are essentially guessing about what the market will do and when.
Taking it a step further, according to the graph above, some of the best trading days come immediately after some of the worst. Investors who go to cash or do a mass sell-off during a volatile market are likely to miss out on significant gains.
This is why our team at WealthChoice believes that, rather than trying to time the market, we should focus on investing for the long game. By staying the course (and staying in the market) through highs and lows, we believe our client portfolios are more likely to take advantage of some of the “best” days of gains.
We believe in educating and empowering our clients. Given recent market volatility, we recently set up an educational webinar for our clients. The Q&A was so impactful that we wanted to make it available to everyone who had questions! To view the webinar recording, Navigating Tariffs and Market Volatility, click here!
Our team views investing as a holistic process. We consider everything from risk management to investor psychology and behavior, technical portfolio construction, and our clients’ unique goals.
We’re helping our clients play the long game by building portfolios that balance every facet of wealth management and regularly evaluating asset allocation to help them strategically rebalance during market ups and downs.
The Benefits of Working With a Financial Advisor
When faced with market volatility and general economic uncertainty, it’s easy to feel like the stock market is all-consuming. At WealthChoice, we believe that investing is just one component of our clients’ overall wealth management strategy. When we partner with you, we focus on creating a portfolio that matches your unique goals and risk tolerance.
But that’s not the primary value we believe we bring to the table when working with our clients.
When you work with WealthChoice, you get:
- A true financial partner. Yes, we’re watching the markets and making strategic adjustments to your portfolio. More than that, though, we’re walking alongside you to answer questions, pivot your plan based on changes in your life, helping you prioritize goals and make financial decisions, and more. We’re in your corner every step of the way, no matter what the market is doing.
- A focused guide. We work with clients just like you, and we’ve truly seen it all. Our job is to take our years of experience and transform it into personalized financial advice that’s uniquely tailored to your individual goals and situation.
- A holistic planner. We focus on your portfolio, but we’re also helping you focus on: retirement, tax strategy, cash flow, career and stock option planning, insurance, education savings, and so much more. Our team looks at your financial plan as a sum of many moving parts. We worry about keeping all of these plates spinning so that you can achieve financial peace of mind and refocus your energy on what actually matters – living your life to the fullest.
The WealthChoice Advantage
In our experience, one of the top benefits our clients get from partnering with our firm is that we’re there to support them emotionally through every season of their lives. According to studies by Vanguard, the estimated financial benefit of behavioral coaching from your financial advisor can add up to 1.5% in additional returns in your portfolio, purely by helping clients manage their response to market turbulence.
Behind the charts, portfolios, and financial plans lies the most valuable aspect of our relationship: a trusted partner who understands both your financial situation and your personal journey. When markets plunge or life throws unexpected challenges your way, having someone who knows your goals and can provide objective guidance proves invaluable. We serve as a buffer between your emotions and your financial decisions, helping you avoid costly reactions to short-term events that could derail your long-term strategy.
This human element of financial advising often goes unmentioned in promotional materials focused on investment returns and technological capabilities. Yet, time and again, our clients tell us that what they value most is knowing they have someone in their corner who can validate their concerns while keeping them focused on the bigger picture. In a world of algorithmic investing and robo-advisors, this thoughtful, personalized guidance represents the true WealthChoice difference.
Want to learn more?
You deserve a financial planner who prioritizes your education, and empowers you to feel confident in your strategy – even during periods of market volatility. If you want to learn more about partnering with our team at WealthChoice, we encourage you to book a complimentary consultation today. We’re here to support you in achieving your unique goals, whatever they may be.
