May 7, 2025
Filed under: General
I’ve been dragging my feet a bit on writing this month’s newsletter, waiting to see what would happen after “Liberation Day”, trying to decide what message would be most helpful right now. That’s why you’re receiving our April newsletter at the beginning of May! As I talk to clients and colleagues, I’m realizing that we are in a bit of limbo, as well as overwhelm right now. The significant reciprocal trade tariffs have been paused (except for China, and some non-USMCA-compliant goods coming from Canada & Mexico, and some part of autos) for 90 days. So, we have a kind of reprieve on the tariff side while we see what is negotiated.
It would be easy to think this is just about tariffs, the markets and interest rates, but the reality is that there is so much more going on all at the same time. Earlier in this year (which already seems long ago!), we shared a title “Everything, Everywhere, All At Once”. It seemed apt then but is more appropriate right now. This isn’t just about economic turbulence…much more is at stake, and I don’t think a lot of people are keeping up. Financial analysts just don’t know what to say because no one knows what is going to happen next, and all they can lean on is the experience and strategies of past experiences, none of which is quite like what we are in right now. And they aren’t addressing the full range of uncertainty – just the economic/market side.
More importantly, it’s hard to believe some of the news headlines that one can find out there in mainstream newspapers and television (I am leaving social media out on purpose). And yet, this is not a time to put your head in the sand. Even if it’s overwhelming, you need to stay informed or you risk some big surprises, pitfalls and missed opportunities. Generally, I am an optimistic, forward-thinking person. I believe I can get myself out of any “trouble” eventually. I also am willing to think about the “unthinkable” because at least I have a chance of having a plan and some options. If I am not willing to think about the “unthinkable”, I believe I risk getting caught flat-footed by surprises that could have been planned for. How about you? And one note…the key to staying informed is somehow not getting too worked up about what you are learning. I know, easier said than done but critical for your mental health.
As we are meeting with clients right now, we have been going through some worst case scenarios and thinking about each client’s options. That seems to have been reassuring. Small, mid-course corrections in times of declining markets and/or higher inflation can provide stability and more financial security. This is a time to be creative and flexible which then can provide some resilience. But it may take more. This isn’t just about an economic upheaval. When the tax-exempt status of one of the top universities in our country is threatened, there are follow-on effects for other non-profits, charitable giving, etc… When the Treasury bond market seems to be acting in a less traditional way, we need to take note. We will continue to watch all of this for you, but we’ve never had to game out something quite like this before. All I can say is stay tuned and stay informed. Meanwhile, we’ll be thinking about some of the “unthinkables” for you.
Times of financial turbulence can also be teaching moments with family members, especially the Rising Generation. Read on to hear Jared Jones’ thoughts on “How To Talk About Money in Uncertain Times”. I think you will find it interesting, and you’ll see my quote about 2008…at least how it felt for me.
While we may be busy with Spring meetings, and additional calls with other clients, we have time for you. We are happy to talk about whatever is on your mind, review your overall financial situation and look for the opportunities, the potential pitfalls and the possible places of flexibility to prepare for whatever is ahead.
Take good care,
lisa