Maintaining a Long-Term Perspective

Equity markets have experienced increased volatility over the past month, driven by a combination of factors including signs of economic slowdown, ongoing geopolitical tensions, and shifting political priorities following the transition to the Trump administration. Economic indicators have shown mixed signals, with some pointing to potential weakening in certain sectors while others remain resilient. Last week, a significant downward revision of the Federal Reserve Bank of Atlanta’s real-time estimate of GDP this quarter heightened concerns.  While notable, the revision was likely due to a surge of imported goods, ahead of tariff implementation.¹ Additionally, it is not unusual to see equity markets trade sideways or even decline in the first few months following an administration change, or after a strong year (or two) similar to 2023 and 2024.

Our Approach

In times of uncertainty, we believe it's important to maintain perspective. History has consistently shown that markets eventually recover from periods of volatility, often rewarding those who maintain a disciplined approach aligned with their long-term goals.

Our investment philosophy remains centered on:

• Diversification across asset classes
• Strategic allocation based on your specific time horizon and risk tolerance
• Regular portfolio reviews and adjustments as needed
• Focusing on fundamentals rather than short-term market movements

What This Means for You

While it can be tempting to make significant changes to your portfolio during periods of market stress, we caution against reactive decisions that could undermine your long-term financial objectives. Market timing is notoriously difficult, and investors who exit markets or make material changes during periods of uncertainty often miss the subsequent recoveries.

That said, periods of market volatility can present opportunities to reassess whether your current investment strategy remains aligned with your goals. If recent events have caused you to reconsider your risk tolerance or investment timeline, please do not hesitate to contact a member of your West team to discuss whether any adjustments to your portfolio are warranted.

Thank you for your continued trust in our guidance. We remain committed to helping you navigate these complex times with confidence.

Sources:

¹ https://www.atlantafed.org/cqer/research/gdpnow.aspx

West Financial Services, Inc. (“WFS”) offers investment advisory services and is registered with the U.S. Securities and Exchange Commission (“SEC”). SEC registration does not constitute an endorsement of the firm by the SEC nor does it indicate that the firm has attained a particular level of skill or ability. You should carefully read and review all information provided by WFS, including Form ADV Part 1A, Part 2A brochure and all supplements, and Form CRS.

This information is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own.

Certain information contained herein was derived from third party sources as indicated. While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any information presented. WFS has not and will not independently verify this information. Where such sources include opinions and projections, such opinions and projections should be ascribed only to the applicable third-party source and not to WFS.

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