March 12, 2025, 11:45 AM (EST)
Recent Market Volatility Due to Tariffs
As highlighted in several reports, the recent imposition of U.S. tariffs has significantly contributed to market volatility. The introduction of new tariffs has led to continued fluctuations in financial markets. This scenario reflects a pattern seen in previous instances where protectionist measures have been implemented. Historically, such policies have tended to hinder economic growth in the short term, although their long-term effects are often less severe. Despite these pressures, markets are expected to adjust over time as businesses and investors recalibrate their strategies.
In the past 30 days, the U.S. markets have experienced notable declines, exacerbated by these tariff implementations. The S&P 500 Index has decreased by 8.18%, while the Nasdaq 100 has fallen by 10.68%. These declines were particularly pronounced on March 12, 2025, when the S&P 500 closed at 5,572.07, and the Nasdaq Composite ended at 17,436.10. The broad-based decline across all sectors suggests that the impact of tariffs is widespread, affecting various industries and investor sentiment.
Action Steps for Long-Term Financial Planning
We have been advising clients to focus on long-term financial planning strategies to navigate this volatile environment. Maintaining a long-term perspective can help mitigate the effects of short-term market fluctuations. One recommended approach is to continue diversifying investment portfolios across different asset classes and geographies to reduce exposure to specific risks associated with tariffs and trade tensions.
Furthermore, investors should consider allocating resources towards less susceptible sectors to trade disruptions, such as technology and healthcare. These sectors often demonstrate resilience during periods of economic uncertainty. Additionally, maintaining a cash reserve can provide liquidity and flexibility to capitalize on market opportunities when valuations become more attractive.
In conclusion, while the current market volatility driven by tariffs presents challenges, it also offers opportunities for strategic long-term planning. By focusing on diversification, sector resilience, and maintaining liquidity, investors can position themselves to weather the storm and potentially benefit from future market recoveries.
Upcoming Key Financial Dates for March 2025
- March 15: Federal Reserve FOMC Meeting
- March 20: U.S. Retail Sales Report
- March 25: U.S. GDP Report (Q1 2025 Estimate)
- March 31: End of Q1 2025
Disclosure Statement
(“MRA”) MRA Advisory Group’s Investment Committee prepared this document for informational purposes only. It is not intended to be investment advice or a recommendation to engage in any investment strategy. MRA is not responsible for any errors, omissions, or results obtained from using this information.
All investments carry a degree of risk, including the possible loss of principal and fluctuation of value. Views, opinions, and analyses expressed herein are those of the analyst and are based on information considered reliable at the time of publication. However, information can change over time and is not intended to forecast future events or guarantee future results.
This analysis does not consider your specific situation or your financial objectives. It has been prepared without regard to the individual financial circumstances and objectives of the persons who receive it. MRA recommends that investors independently evaluate particular investments and strategies and encourages investors to seek the advice of one of our Wealth Advisors. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
The sectors mentioned in this report may not be suitable for all types of investors, and their values can decrease as well as increase. Past performance is not necessarily indicative of future performance. No current or prospective client should assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this report or indirectly via a link to an unaffiliated third-party website will be profitable or equal to corresponding indicated performance levels.
This report does not purport to be a complete statement of all data relevant to making an investment decision. Investors should, therefore, conduct their own research and due diligence before investing.
This document was created by Daizy using institutional-grade data and in collaboration with several external Large Language Models. All calculations were performed by the Daizy LLM Analytics Service. The contents of this document do not constitute investment, tax, or legal advice, and Daizy (Vesti.ai Ltd) is not authorized to give any advice. [Please refer to our terms of use.]
Advisory Services are offered through MRA Advisory Group, a Registered Investment Adviser. It is general in nature that the statements herein are not a complete statement of all information necessary for making an investment decision and is not a recommendation or a solicitation to buy or sell any security. The investments and strategies mentioned may not be suitable for all investors. Past performance is no guarantee of future results. Nothing herein, nor any attachment, shall be considered to constitute (i) an offer to sell, nor a solicitation of an offer to purchase, any security, or (ii) tax or legal advice.