[EDITOR’S NOTE: As you know, we are thrilled to have added a fifth member to our advisory team, Mat Pepin.  In the almost four weeks that Mat has been part of our group, we have thrown everything but the kitchen sink in his direction…and now he has the pleasure of sharing his first bi-weekly communication…enjoy]

As spring unfolds, we find ourselves in that unpredictable season — one moment it’s winter coat weather, the next it’s time for shorts and a T-shirt. Financial markets seem to be mirroring this same unpredictability. Volatility, both down and up, has become the hallmark of 2025.  It is the sort of market where active management works; where diversification shines; and where keeping your eyes on your own long-term goals is paramount.

Fund managers have been working tirelessly to assess and take advantage of policy shifts, trade disruptions and currency shocks. While transitions bring uncertainty, they also open the door to opportunity for those who remain calm, focused, and clear-eyed. In turn, as advisors, we have been doing our best to share current and accurate information with our clients. If there is one thing that we are confident about, its that volatility isn’t going away any time soon.

In the moment, volatility can feel more severe than it truly is. This is called “recency bias”. The real question is: Is today’s market turmoil truly unprecedented? The accompanying chart displays the S&P 500 Price Index on a logarithmic scale, which more accurately reflects percentage changes over time.

(Fisher Investments 2021: https://www.fisherinvestments.com/en-us/resource-library/market-cycles/volatility/in-perspective)

All in all, what does this mean? There is always a reason to be concerned; but despite the ever-present challenges, market returns have always progressed higher…it is often said that the ‘market climbs a wall of worry’.

Just like this is a great time of year to store the hockey bag and get out the rake, it is also the time to do some financial spring cleaning. Organizing your financial life now can help you enjoy the warmer months ahead with clarity and peace of mind.

As always, we’re here to support you on your financial journey and address any concerns you may have along the way.

–MAT