With all the movement in the markets lately, we wanted to check in. It’s natural to keep a close eye on your portfolio during times like these; if you’re feeling a little uneasy or unsure, you’re certainly not alone.
We want to reassure you that at Foundation Wealth Management, we follow a long-term strategy that isn’t driven by emotion or news cycles. At times like this, the strength of a disciplined investment approach becomes most apparent.
While recent market fluctuations have been driven in large part by concerns over tariffs and trade tensions, we recognize this is a very fluid situation. The administration is expected to continue trade negotiations over the next few months and headlines will likely shift quickly and often.
Our approach is designed with times like these in mind. There are 3 key ways our strategy supports clients during turbulent times:
1. Cash Flow Planning
We build cash flow into your portfolio. That means we set aside a portion of your assets in liquid Money Market funds and short-term reserves. These funds are ready to meet your short-term needs, no matter what the market does. Having a buffer helps you avoid selling investments at an unfavorable time.
2. Strategic Rebalancing
Rebalancing means adjusting the mix of investments to keep your portfolio aligned with your goals. When markets move, rebalancing becomes a topic of conversation.
Market volatility can present an opportunity. We utilize thresholds for rebalancing to keep your portfolio aligned with your target asset allocation. This disciplined process allows us to buy more of what’s temporarily down in value, positioning your portfolio for potential recovery when markets stabilize.
3. Staying Invested Through the Ups and Downs
Timing the market simply doesn’t work, at least not consistently, and certainly not without risk. The market can bounce back as quickly as it drops.
We’ve seen this kind of volatility before. In early 2020, the S&P 500 dropped sharply during the initial shock of Covid. Despite the uncertainty, the market rebounded and reached new highs by November of that same year. It’s a reminder that even in the face of disruption, companies adapt, and markets recover.
Investing is a Marathon, Not a Sprint
We know short-term losses hurt, but we must zoom out and look at the bigger picture. Over time, the markets have historically rewarded disciplined and patient investors.
We’re here to support you through the ups and downs. If you’re feeling uneasy, please don’t hesitate to reach out to a member of the Foundation team. We’re happy to walk you through your plan and how it’s built to weather times like these.
Stay disciplined. Stay the course.
— Your team at Foundation Wealth Management
About Foundation Wealth Management
Foundation Wealth Management is a CPA-led organization, that provides financial planning services and tax planning support; services and outcomes vary based on each client’s circumstances. Our team includes qualified professionals, such as CPAs and CFP®s, who are integral to our service offerings. Our team includes 3 Certified Financial Planners: Burt Hutchinson, CPA, CFP®, Paul LaViola, CFP®, and Stephen McDade, CFP®.
As Fee-Only planners, we are compensated directly by clients rather than through commissions from brokerage or insurance products, which we believe helps align our services with client goals.
Disclosure Statement:
This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax, or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice. All investments are subject to risk, including the possible loss of principal.
Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, Past performance is not a guarantee of future results.
