It's very difficult to give recommendations when the markets depend so much on comments made by the President of the United States.

 

We began the week at 5,292 on the S&P500 and it appears we're going to finish the week at a similar level. Having said that, the route that the market took to get to the same level 5 days later was anything but simple.

 

During times like these, it is important to make sure that portfolios are properly diversified and allocated based on an individual's risk tolerance. It's also important to keep in mind what has happened during historical stretches of similar market volatility.

 

As you can see from the chart below, nearly every time the market has experienced similar multiple day declines and volatility to what we are experiencing, it has been higher one year later, 3 years later and 5 years later. Now maybe it's different this time because we have a different kind of president in office. However, the words “it's different this time” have caused people much hardship in the stock market over the past 100 years.

 

We believe good companies will do what they must do to grow their earnings and navigate through the tariff announcements. We do not believe it is different this time and we do believe that history will repeat itself and markets will be higher 1,3 and 5 years from now

 

https://x.com/charliebilello/status/1909707556660093386?s=46&t=1KtJJBu8tEBCDi5jn8UiHA

 

 

I have also included a note from our CIBC Economics team entitled “Does one pause beg another? Maybe not”

 

As always, if you have any questions, please feel free to give us a call.

 

Have a great weekend.

 

Milan