Happy Spring!
April 1, 2025 / Market Updates
Happy spring from all of us at Signature Wealth Management! We have survived another winter and all that came with it – volatile temperatures, unpredictable weather, and lots of uncertainty. Not unlike what we have seen in the markets and on Capitol Hill!
We take pride in our ability to keep clients informed about what is happening and how it could impact their wellbeing, financially and otherwise. In light of this, we recently held two webinars to address the current markets and volatility. Below are insights shared with us from our most recent webinar, where we were joined by Meera Pandit of J.P. Morgan Asset Management.
Meera Pandit, Executive Director, is a Global Market Strategist on J. P. Morgan’s Global Market Insights Strategy Team. She is responsible for delivering timely market and economic insights to institutional and retail clients, conducting research on the global economy and capital markets, and running economic forecasts. She is also responsible for publications such as the Guide to the Markets and is a contributor to the J.P. Morgan Long-Term Capital Market Assumptions.
We would like to share with you some key insights from our recent discussion with Meera:
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- It is not tariffs themselves, but rather the reactions to tariffs that cause the disruption. Even if nothing comes of the tariffs, consumers and businesses alike are in a “wait and see” status – the three most dangerous words for the economy.
- Where would consumers feel tariffs? In the short-term, we could see low grade inflation, though there are yet to be any products or fields that have been specified.
- Despite how people are feeling, the tangible factors still show strength in the markets and economy.
- Equity volatility is back, but stocks are underpinned by solid fundamentals. Keep in mind long-term averages versus the current discomfort.
- Down the line, we may see deregulation, which can help the economy. From this, we may see productivity and efficiency increase, while energy costs for consumers decrease.
- There is a lot of noise about changes to Social Security and Medicare. It is Medicaid that is currently on the table, not SS nor Medicare.
- Our viewers asked if there will be changes for those who already draw from Social Security. The short answer? NO. It takes a lot to disrupt something as large and complex as this. Many parties need to be involved for even a slight change to be made – this cannot be done simply by one person’s signature.
John Madson on our team said it best: we don’t build portfolios just to thrive in the good times. We build our clients’ portfolios to weather these uncertain times. It remains one of our core commitments to ensure clients are well diversified, remain tax efficient, and hold the best-in-class investments available. It is human to have an emotional response to uncertainty. And it is our job to help you through it. - It is not tariffs themselves, but rather the reactions to tariffs that cause the disruption. Even if nothing comes of the tariffs, consumers and businesses alike are in a “wait and see” status – the three most dangerous words for the economy.