Category Archives for "Investor Letter"

Market Commentary

The markets are taking a hit today. The main reason being cited is the new tariffs imposed by the Trump administration. While this may seem dramatic, it could be a short-term overreaction. It's likely that some of these tariffs will be negotiated down over time, especially as other nations remove barriers to U.S. products. 
We're not here to advocate for or against tariffs—our goal is to help you understand what's going on in the market and how it impacts your portfolio.

Market Snapshot (as of last night):

• S&P 500: down 3.39% year to date (YTD)
• Nasdaq 100 (tech stocks): down 6.735% YTD

Market Commentary

The market trended higher until February 19th. Since then, the S&P 500 has declined nearly 7% as of Thursday, March 6th, while the Nasdaq 100 has dropped almost exactly 10%. Year to date, the S&P 500 is down 2.28%, and the Nasdaq has fallen 4.50%.

What’s driving this decline? While some point to the Trump tariffs, pinpointing the exact cause of market movements is always difficult. The market has been rising for two years, and so far, this remains a relatively small pullback. We do not believe the Trump tariffs will exacerbate inflation. Although tariffs increase costs by adding taxes at the country of origin, history suggests limited inflationary impact. During the previous Trump administration, numerous tariffs were implemented, yet inflation remained low. Additionally, many proposed tariffs may not materialize, as they often serve as a bargaining tool for broader policy objectives.

Even when tariffs are enacted, their impact can be offset by other economic forces. For example, the U.S. is imposing new tariffs on various Canadian products—just as Canada has done with U.S. goods. However, the weakening Canadian dollar is effectively neutralizing some of the tariff’s impact.

Tax/IRA Season Update

You still have time to complete your 2024 contributions. The deadline for 2024 tax year contributions is April 15th, 2025. For traditional IRA contributions, you have the opportunity to contribute the maximum amount and, in most cases, still qualify for a tax deduction. However, income limits may restrict the deductibility of traditional IRA contributions for higher-income individuals.