One of Warren Buffett's famous investing quotes is, "Be fearful when others are greedy and greedy when others are fearful." This wisdom aligns well with his principle: "Rule no. 1: never lose money. Rule no. 2: never forget rule no. 1."
Earlier this month, the White House announced broader and more aggressive tariffs than the markets had anticipated.
There are varying perspectives on what these new tariffs mean:
Some view this as short-term pain that could pave the way for longer-term economic gains.
Others worry about potential long-term negative effects on global trade and growth.
Some believe the tariffs are being used as a negotiating tool to balance trade and incentivize businesses to bring operations back to the U.S.
Most economists agree that tariffs function like a one-time tax—typically paid by consumers and corporations—which can drive up inflation and are historically linked to periods of economic slowdown.
The key question is how long? Tariff policies haven’t been used at this scale since the 1920s and 1930s, which helps explain why markets are responding with such heightened sensitivity.
As a result of the tumult, over the past couple of weeks, we have seen some of the more volatile trading days in recent memory. While these swings can feel unsettling, it's important to remember that volatility is a normal part of market cycles.
Stick to your roadmap
Every investor knows there are highs and lows during the year. The challenge is to remain 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
As tariff uncertainty is starting, 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
What does this mean for you?
Regardless, as we navigate today's market landscape together, it still raises an interesting question: Is this the fearful environment where Buffett might see opportunity?
What will the markets do in the next 12 months? Ask again in February 2026 for how it turned out. In the meantime, staying focused on long-term goals and the strategies that protect what you've already built remains the priority.
We design portfolios to handle some volatility, and headlines and emotion should not be the drivers of investment decisions. Instead, as your investing team, we are closely monitoring the situation and will keep you informed as things evolve. We will stay diversified, with international stocks and fixed income doing well while U.S. markets adjust and anticipate.
Remind yourself that different time horizons for your different buckets of money will determine the allocation mix of your portfolio. Those longer-term buckets should contain stock market exposure. History has shown us that this too shall pass, and this will prove to be a great buying opportunity.
Volatility may continue, so if you have any questions, please don’t hesitate to reach out. As always, our priority is to stay in communication with you to provide clarity in these nerve-wracking moments. Our team is available to discuss your strategies in more detail. We coordinate with your legal, tax, or insurance professionals to help align your approach with your objectives.
In 2025, let’s manage your situation. Let’s not let the markets dictate what we do.
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1. www.wstreet.com, April 2, 2025. "Making Money with Charles Payne"
2. J.P. Morgan Asset Management, 2025. "Guide to the Markets."