“The four most dangerous words in investing are: ‘This time it’s different.'” — Sir John Templeton
With recent headlines dominated by renewed trade tensions, shifting policy announcements, and sharp daily market moves, it’s no surprise that investors are on edge. Markets have experienced meaningful declines, largely driven by proposed reciprocal tariffs and global responses—including China’s recent retaliatory measures. And while these developments feel unique in the moment, history tells a more grounded story.
What’s Behind the Recent Volatility?
A major contributor to recent market declines has been the reintroduction of large-scale tariffs, most notably the new set of reciprocal tariffs signed by President Trump. These were followed swiftly by China imposing a 34% tariff on U.S. imports and restricting exports of key materials such as rare earths—which are critical to technology and defense industries.
Tariffs, simply put, are taxes on imported goods. They can be used by countries to rebalance trade dynamics, protect domestic industries, or incentivize domestic production. While some view tariffs as a correction to decades of trade imbalances, they can also increase costs for companies and consumers, particularly if other nations respond in kind.
When uncertainty spikes—as it has with shifting economic policy, global negotiations, and market reactions—short-term volatility often follows. However, volatility is not new. It is part of the journey for long-term investors.
Why Discipline and Diversification Matter
At Strategic Income Group, our clients’ portfolios are not positioned based on market speculation or short-term trends. They are structured around purposeful diversification, income generation, and risk-managed strategies designed to withstand a variety of market conditions.
When markets become volatile, diversified portfolios help cushion the impact. Income strategies and private market solutions may provide greater stability when equities pull back. And for many clients in or nearing retirement, strategic income planning helps ensure you don’t need to sell assets during turbulent periods.
For those in the accumulation phase, market pullbacks often present opportunities. It’s during these moments that disciplined investing, dollar-cost averaging, and thoughtful rebalancing can improve long-term outcomes.
The key is to stay grounded in a plan—not driven by headlines.
What You Can Do Now
If you’re feeling anxious about the markets, you’re not alone. The good news is: you don’t have to navigate this alone either. Here are a few important steps to consider:
- Review your financial plan. Has anything in your personal situation changed? Your plan should reflect your goals, not the day’s headlines.
- Reconnect with your Financial Planner. If you don’t have one, schedule a complimentary consultation with our team to review your current strategy.
- Understand your portfolio. Whether you’re seeking long-term growth or reliable income, we offer customized solutions including strategic retirement income planning, alternative investments, and faith-aligned investing.
- Stick with your values. If you want your investments to reflect your faith and convictions, explore our Kingdom Impact Investing approach.
Final Thoughts
While no one can predict what markets will do in the short term, we can say with confidence:
Having a plan that aligns with your goals, values, and stage of life is the best way to weather volatility.
If you have questions or want a second opinion on your current financial approach, we’re here to help.
Schedule a conversation with our team →
Stay grounded. Stay focused. And remember: your financial future is built on wisdom, not fear.
Strategic Income Group is an SEC Registered Investment Advisor providing comprehensive financial planning and investment management services. We specialize in helping individuals and families align their financial decisions with their values, goals, and stage of life.
