Perspective on the Headlines: Staying the Course

The White House’s newly announced tariffs – aimed at shifting more business back to the U.S. – have sparked volatility in global equity markets. It’s a good moment to remember: lower prices reflect higher perceived risk, but they also create the potential for stronger future returns.

Market volatility isn’t unusual. It’s a natural part of how long-term returns are earned. Discomfort and uncertainty are the price of admission. Whether markets fall further or reverse course, your portfolio is designed to handle these periods of uncertainty.

While unsettling, the S&P 500’s current drawdown is far from unprecedented. We’re updating a visual we shared with you back in March when markets first began to show signs of weakness. Over the past 75 years, market pullbacks of this magnitude have occurred regularly – and have historically recovered each time.

S&P 500 Corrections Since 1950* – Frequency, Depth, and Recovery Time

*Corrections include drawdowns of 10% or more from the previous peak

How We Navigate Volatility

Periods like this are when your investment plan matters most.

At TFO Wealth Partners, we design global, diversified portfolios that can absorb shocks across asset classes. In moments of stress, that diversification not only cushions the blow – but it also creates optionality. Depending on your plan and positioning, we may consider:

• Tax-loss harvesting – to enhance after-tax returns
• Tactical rebalancing – to restore allocation targets and improve long-term risk-adjusted performance
• Accelerated dollar-cost averaging – to make use of lower prices
• Thoughtful cash deployment – to put reserves to work during market dislocations

If you’d like to revisit your allocation or talk through any of this, please let us know.