Tariffs Stir Market Volatility

Every investor knows there are highs and lows during the year. The challenge is remaining focused during the lows.

As the 2025 tariff talks have progressed, stock prices have seen more down days than up days as the details get rolled out.

“Outside of ‘tariffs,’ the word most associated with pressure on the stock market has been ‘uncertainty,’” said Charles Payne, CEO of Wall Street Strategies. “Ultimately, businesses must adjust to macro conditions–supposedly that’s why CEOs earn millions of dollars.”¹

With some tariff uncertainty starting to fade, it’s time for CEOs to make some moves on the chess board. As investors, we get to watch the game play out.

Today’s chart shows that intra-year declines are part of investing. In 2024, for example, stocks pulled back 8 percent during the year en route to a 23 percent annual gain. But pullbacks will test your mettle. Who can forget the 34 percent pullback in 2020?

Remember, stocks don’t move in a straight line. So, it might be best to consider 2025 a work in progress.²

When we created your portfolio, it reflected your goals, risk tolerance, and time horizon. So, you have to let me know if something has changed in your life as soon as possible. For example, one of my clients told me his 2024 tax bill came in higher than expected, so we had to develop a strategy for raising the money. 

In 2025, let’s manage your situation. Let’s not let the markets dictate what we do.

^{1.  www.wstreet.com, April 2, 2025. "Making Money with Charles Payne"}

^{2. J.P. Morgan Asset Management, 2025. "Guide to the Markets."}