Your Money, Your Moves: May 2025 Issue

Expect the Volatility. Prepare the Strategy.

What’s covered in this newsletter:

• Current Look at the Market for DIY Investors

• Our 3 Model Portfolios

• Forward Guidance for the Markets

• Money Tip: Building an Emergency Fund

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Current Look at the Market

The market took a beating in April— and it wasn’t subtle.

S&P 500 Futures - April 2025

The Trump administration had their ‘Liberation Day’ announcement on April 2nd, and to say the market didn’t take kindly to that news would be grossly understated. In a matter of 5 days, the market sold off -16.27%. Unreal! Then on April 7th (circled in pink) there were rumors that there would be a pause on tariffs. Fake news!

The real news occurred 2 days later on April 9th (circled in blue) wherein President Trump announced a 90-day pause on ‘reciprocal’ tariffs for most countries, but not on China. Exhausted yet? Buckle up because this is likely going to be a common theme for the next while, possibly the duration of the current Administration’s tenure.

Meanwhile, companies have been reporting earnings from the prior quarter (pre-tariffs), but come July-August, Q2 reports will start reflecting the impact—especially from China.

We are now in a full-blown trade war with China. How it ends? Pure speculation.

A resolution is badly needed. As the master poet Maynard James Keenan once said: “Cold silence has a tendency to atrophy any sense of compassion.” And right now, the U.S. and China are locked in cold silence.

But here’s the part no one's talking about yet...