Chaos and Opportunity: A Market Update

Author

Beacon Pointe Advisors

For more information about the author, click to view their website: Beacon Pointe

Posted on

Mar 21, 2025

Book/Edition

Florida - Southwest

share-this
Share This

The last several weeks in the market have been challenging for long-term investors and traders alike. Mixed messages from policy makers, generally positive earnings news, and renewed concerns on economic growth have put volatility on the boil with the VIX, the market’s fear gauge, rising from 14.7 to 27 since February 11. For reference, a reading above 20 signals greater volatility while a reading above 30 generally connotes serious market stress.

Stock prices have retreated with the center of that retreat located within the largest growth stocks that had been the stalwarts of the S&P 500’s rise over the past two years. Apple, Microsoft, Nvidia, Broadcom and Tesla are now so widely held it must seem to some investors that the wheels are falling off the bull market. The widely followed investor sentiment surveys confirm this. Twice as many investors are now bearish as are bullish. This is almost a perfect reversal from a year ago and the most bearish reading since the market sell-off in 2022. The decline in sentiment is rational when the current rise in chaos and uncertainty is considered.

Investors, writ broadly, tend to overreact at changes of direction, whether that change is sourced from policy change, an external threat, or the anticipation of an economic retraction. When the VIX is elevated and sentiment is soured, as has occurred recently, stock prices retreat, sometimes painfully so. These conditions also lead to buyable opportunities for long-term investors who are aware of what they own and what they would like to own.

Looking under the hood of the recent decline provides some confidence for those investors that want to “step up” and buy stocks at these current cheaper prices. As of March 7, the S&P 500, dominated by the big growth stocks, is down by 1.9% in 2025. The Equal Weighted S&P 500 (where all companies are accorded the same importance) was positive by .57% over the same period. So, clearly some U.S. stocks are weathering current conditions better than the biggest stocks which make the biggest headlines.

The MSCI EAFE index, which tracks stock prices for the developed markets outside the U.S., is positive by over 11% so far in 2025. So, a diversified investor who maintains exposure to overseas markets is looking at gains in that part of their portfolio to provide some hope and perspective during this rough patch for U.S. stocks. Bonds have performed their traditional role as a bulwark against stock declines this year. The Barclays Aggregate Index of investment grade U.S. bonds is positive by 1.8%, cushioning the decline in stocks.

We are not saying that this decline in U.S. stock prices is over or about to end. We think you should run from any advisor who claims to know the timing of market rises or declines. Selling may intensify, markets may stay unsettled, and volatility may increase. With the S&P trading at a rich 21 times its next year’s anticipated earnings, we believe it would be foolish to counsel investors to jump in with both feet. What we do know, however, is that it has paid to bet on an eventual market recovery, and it is better to purchase shares at lower rather than higher prices.

While watching current conditions with interest and analyzing the risks inherent in them, we are also tracking the opportunity uncovered by lower prices in attractive stocks. Franklin D. Roosevelt once said that “smooth seas seldom produce skilled sailors.” Our experience with the periodic turbulent episodes of the past 40 years or so has taught us that instead of running for a calm harbor, our efforts are better focused on adjusting our sails and battening the hatches. While we are vigilant in scanning current risks and keen to make appropriate adjustments, we know to be protective. As importantly, we are anticipating the purchase of stocks at attractive prices as this cycle plays out.

Thank you as always for the confidence you have reposed in us in the important task of managing your portfolio.


Other Articles You May Like

Discovery Senior Living Launches First-of-Its-Kind The Disappearing Mind Podcast Addressing Need for Trusted Brain Health & Dementia Resources

Project Update - Immokalee Complete Streets

PROJECT UPDATE IMOKALEE COMPLETE STREETS TIGER GRANT DESIGN-BUILD PROJECT JUNE 2025PROJECT UPDATEThe Immokalee Complete Streets Project is finished and includes new sidewalks and drainage along miles of local streets. In addition to the sidewalks, the project included reconstruction of many existing residential driveways and improvements to the drainage swale along your property line within the Collier County Right-of-Way (ROW).We need to work together to keep these new sidewalks and drainage improvements in good condition. Please do your part to help maintain the improvements by complying with the existing codes which require property owners to assume all maintenance and repair responsibilities within the Collier County ROW. These responsibilities include mowing the grass and protecting the sidewalk and driveway from damage.We are requesting your help to maintain these improvements including: Drainage cutting the grass within the swale is very important because it will allow the drainage system to function. Picking up the litter before you mow will also keep the community clean. Pedestrian Safety do not park on the sidewalks, it is against the law and blocks the safe passage of children and adults. Heavy trucks and equipment can damage the sidewalk. The construction of sidewalks is expensive, and your help is needed to maintain them. Please remember it is illegal to park on a sidewalk. Both the Collier County Sheriffs Office and the Collier County Code Enforcement Division are monitoring to encourage voluntary compliance. Citations will be issued if the law is broken. It is the property owners responsibility to assure that all your visitors, tenants, and family members obey the law. You, as the property owner, are responsible for maintaining the driveway and ROW.If you rent your property, please inform your tenants of this information. As a landlord, you are responsible for providing your tenants with this information.We hope you enjoy the improvements along the county roadways and please continue to assist your neighbors as we work to improve the health and safety of our community.For more information about the project, please contact: CHRISTIE BETANCOURT ASSISTANT DIVISION DIRECTOR COMMUNITY REDEVELOPMENT AGENCY (CRA) Email: Christie.Betancourt@colliercountyfl.gov Phone: (239) 867-0028 IMMOKALEE CRA Collier County Community Redevelopment Agency

June is Alzheimers & Brain Awareness Month

This June during Alzheimers & Brain Awareness Month, the Alzheimers Association is encouraging all Americans to take charge of their brain health.  Today, there are more than 7 million Americans living with Alzheimers. Two-thirds of Americans have at least one major potential risk factor for dementia. The brain changes that cause Alzheimers are thought to begin 20 years or more before symptoms start, which suggests that there may be a substantial window of time in which we can intervene in the progression of the disease. Experts believe there isnt a single cause of Alzheimers. Its likely the disease develops as a result of multiple factors. While not a direct cause of Alzheimers, the greatest known risk factor is advancing age. Although some risk factors like age cant be changed, as many as 45% of dementia cases may be attributable to modifiable risk factors, such as high blood pressure and lack of physical activity. Research shows that adopting healthy behaviors like getting exercise and good quality sleep can improve your brain health and reduce the risk of cognitive decline. Based on mounting scientific evidence, the Alzheimers Association encourages individuals to incorporate these 10 Healthy Habits   such as challenging your mind and eating healthier foods to help protect brain health. Be Proactive in Addressing Brain Changes Only half of those with Alzheimers disease ever receive a diagnosis, delaying needed care and potentially putting them at risk. Another important way to take charge of your health is to know the early warning signs of Alzheimers and other dementia and be proactive in addressing them. Early detection and diagnosis of Alzheimers is more important than ever. Early detection offers significant benefits for the person diagnosed and their loved ones, including greater access to treatment options and the ability to plan for the future. There are now treatments that can slow disease progression for people in the early stage of Alzheimers, making a timely diagnosis critically important. If you or someone you know is experiencing memory or thinking problems, its important to get it checked. Talk to your doctor so you can make an informed decision on available treatments to determine if they are right for you.  Join the Fight to End Alzheimers  During Alzheimers & Brain Awareness Month, the Alzheimers Association invites everyone to join us in the fight to end Alzheimers and all other dementia. Heres what you can do:         Adopt the 10 Healthy Habits: It is never too early or too late to start taking positive actions for your brain. Visit alz.org/healthyhabits to learn more!      Go purple: Throughout the month of June, go purple the color of the Alzheimers movement to raise awareness of the disease. Dress in purple and share your story on social media using the hashtag #ENDALZ.      Join the fight: Advance the care, support and research efforts of the Alzheimers Association by participating in our fundraising events Walk to End Alzheimers, The Longest Day and Ride to End ALZ. Visit alz.org/fundraisingevents.       Get information and support: Access education programs and dementia care resources. Visit alz.org/educationalprograms.       Volunteer with us: As an Alzheimers Association volunteer, you can help people in your community take steps to reduce their dementia risk and recognize the signs of Alzheimers. Visit alz.org/volunteer.      Advocate: Raise your voice tell Congress to act today. Visit alz.org/congressconnects.      Accelerate research: It takes everyone to advance Alzheimers and dementia research. Alzheimers Association TrialMatch is a free, easy-to-use service that connects individuals living with cognitive impairment, Alzheimers disease or another dementia, caregivers and healthy participants with current research studies. Visit alz.org/trialmatch.      Donate: Empower people at every age and stage of life to take charge of their brain health support the Alzheimers Association! Visit alz.org/donate.   We are proud to partner with the Alzheimers Association in the fight against Alzheimers and other dementia. To learn more visit alz.org/abam.

Local Services By This Author

Beacon Pointe Advisors

Long Term Care Planning 9240 Bonita Beach Road, Bonita Springs, Florida, 34135

Beacon Pointe is one of the nations largest Registered Investment Advisory (RIA) firms, providing comprehensive financial solutions for institutions, defined contribution plans, high-net-worth individuals, and families. Our success is driven by our peoplea team of talented, diverse, and passionate professionals committed to fostering an uplifting company culture and delivering premier service experiences to our clients.Our ServicesPrivate Wealth ServicesOur Private Wealth Management services offer comprehensive wealth planning and customized investment strategies, empowering clients to make well-informed financial decisions that align with their life goals.Institutional ConsultingWe provide objective and transparent investment solutions, offering long-term strategic planning tailored to the unique portfolio goals and mission of each institutional client.Retirement Plan ServicesOur team delivers expert investment guidance and comprehensive service solutions for 401(k)s, 403(b)s, and non-qualified deferred compensation plans, ensuring clients receive the highest level of fiduciary support.Advisor PartnershipsBeacon Pointe collaborates with successful RIAs and wealth advisors nationwide, fostering synergistic partnerships focused on enhancing efficiencies, value, and long-term growth.With a client-centric, fiduciary-first approach, Beacon Pointe is dedicated to providing strategic financial guidance that helps individuals, families, and institutions achieve lasting financial success.

Beacon Pointe Advisors

Financial Services 9240 Bonita Beach Road, Bonita Springs, Florida, 34135

Beacon Pointe is one of the nations largest Registered Investment Advisory (RIA) firms, providing comprehensive financial solutions for institutions, defined contribution plans, high-net-worth individuals, and families. Our success is driven by our peoplea team of talented, diverse, and passionate professionals committed to fostering an uplifting company culture and delivering premier service experiences to our clients.Our ServicesPrivate Wealth ServicesOur Private Wealth Management services offer comprehensive wealth planning and customized investment strategies, empowering clients to make well-informed financial decisions that align with their life goals.Institutional ConsultingWe provide objective and transparent investment solutions, offering long-term strategic planning tailored to the unique portfolio goals and mission of each institutional client.Retirement Plan ServicesOur team delivers expert investment guidance and comprehensive service solutions for 401(k)s, 403(b)s, and non-qualified deferred compensation plans, ensuring clients receive the highest level of fiduciary support.Advisor PartnershipsBeacon Pointe collaborates with successful RIAs and wealth advisors nationwide, fostering synergistic partnerships focused on enhancing efficiencies, value, and long-term growth.With a client-centric, fiduciary-first approach, Beacon Pointe is dedicated to providing strategic financial guidance that helps individuals, families, and institutions achieve lasting financial success.

Beacon Pointe Advisors

Retirement Planning 9240 Bonita Beach Road, Bonita Springs, Florida, 34135

Beacon Pointe is one of the nations largest Registered Investment Advisory (RIA) firms, providing comprehensive financial solutions for institutions, defined contribution plans, high-net-worth individuals, and families. Our success is driven by our peoplea team of talented, diverse, and passionate professionals committed to fostering an uplifting company culture and delivering premier service experiences to our clients.Our ServicesPrivate Wealth ServicesOur Private Wealth Management services offer comprehensive wealth planning and customized investment strategies, empowering clients to make well-informed financial decisions that align with their life goals.Institutional ConsultingWe provide objective and transparent investment solutions, offering long-term strategic planning tailored to the unique portfolio goals and mission of each institutional client.Retirement Plan ServicesOur team delivers expert investment guidance and comprehensive service solutions for 401(k)s, 403(b)s, and non-qualified deferred compensation plans, ensuring clients receive the highest level of fiduciary support.Advisor PartnershipsBeacon Pointe collaborates with successful RIAs and wealth advisors nationwide, fostering synergistic partnerships focused on enhancing efficiencies, value, and long-term growth.With a client-centric, fiduciary-first approach, Beacon Pointe is dedicated to providing strategic financial guidance that helps individuals, families, and institutions achieve lasting financial success.