As we continue to experience heightened market volatility and shifting economic headlines, we want to take a moment to acknowledge the natural concerns that come with times like these. The news of across-the-board tariffs, the trade war with China and now the 90-day pause, have caused much volatility. It’s completely understandable to feel emotional and unsettled about the markets. These markets can test even the most seasoned of investors.
Periods like this are not new to us- we’ve weathered similar storms before and come out stronger. We have learned that when sentiment is this fearful, it is not the time to sell. The market ups and down are normal. In any given calendar year since 1980, the average drawdown (peak to trough decline) of the S&P 500 index historically has been -14%. (We are currently around -11.63% for 2025). Yet despite this inter-year volatility, the index has tended to finish the year higher than it started. Since 1980 the index has delivered a positive return 82% of the time. Market dislocations often give rise to opportunity, especially to those with a well-diversified portfolio.
Your portfolio is designed with these moments in mind. The flexibility and resilience built into your investment plan are key to withstanding short-term noise while staying focused on long-term goals. We want to assure you that we remain vigilant, informed and proactive. We are continually reviewing your allocation to ensure it reflects both today’s environment and tomorrow’s potential. While no one can predict the next headline, we can prepare and position your strategy to thrive regardless of what tomorrow brings.
Please know how much we value the trust you have placed in us. At GenCrest Capital Partners, your long-term success is our top priority, and we are deeply committed to navigating these market conditions with both clarity and conviction.
Should you have any questions or simply want to talk through these current conditions and how they may impact your plan, we are here. Your peace of mind matters to us just as much as your portfolio’s performance.
Thank you again for your collective trust. We are honored to be your partner and look forward to what lies ahead.
Todd R. Walker
Senior Portfolio Manager