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Dear Clients and Friends, Welcome to our first full newsletter of 2025! I would like to begin with what is, and will likely remain, the understatement of the year: There’s a lot going on. Every day seems to bring a flurry of activity from our new Administration that challenges the status quo. You may hate what’s happening, you may love it, or you may be somewhere in between – which despite what you hear, is an option! As you have read in this space before, and have heard from us for many years, we are not in the business of making political statements or taking political stances. Our job – to the best of our ability – is to make decisions based on what we believe is most likely to happen. It is impossible to know precisely what the impact will be of these interconnected issues, what actions will be implemented, how courts will respond, how officials will respond to courts, and what the economic impacts will be. There seems to be an increasing chorus of talking heads and media (social or otherwise), talking about how terrible the economy is and how poorly the market is doing. Obviously, there are economic challenges, and many people are feeling the pinch, but from an overall perspective, we believe there is a disconnect between this sentiment and what is actually happening, at least so far. It is difficult to write about market performance in times of volatility – words can become dated very quickly. Market volatility has increased, in our opinion, largely due to the economic questions surrounding the proposed/implemented tariffs. However, as of this writing in mid-March, the S&P 500, NASDAQ, and the Dow are still within a few percentage points of their all-time highs. Market and account performance over the last few months cannot be ignored, even as the threat of these actions from Washington has been looming. We believe there are several main reasons for this: 1) Market players are likely expecting that at least some of what is being signaled in Washington is unlikely to happen in the ways currently described – and some policies could ultimately be reversed. 2) Markets are likely a little overwhelmed and many of its players could be waiting to make changes until they have more information. 3) Many areas, especially outside of large, US-based companies, have been holding steady, or actually doing quite well year-to-date – meaning that diversification has been helping performance in many cases. 4) We cannot discount the possibility that even if some emerging policies are unpopular in other ways, from an economic standpoint, at least some of them are currently being viewed more positively than negatively. This recent volatility is certainly concerning, but we have seen plenty of instances recently that prove that policies – and sentiment – can reverse quickly. Remember however, volatility – and even pullbacks – are a normal part of markets, and we must resist the temptation to overreact to short-term movements. StraightLine is watching events closely and collaborating with our research partners to chart a course that we believe will navigate the times in the most effective way. While we have made some adjustments in certain portfolios, we have not yet felt that any major account realignments have been warranted. We encourage you, especially in times of volatility, to focus on the fundamentals. Those fundamentals in this case being the details relevant to you – your situation, your cashflow needs, and your distribution timeframe. If your circumstances have changed, then it may be time to speak with us about adjusting your accounts. If not, sometimes the best, and most difficult thing to do, is nothing. StraightLine knows this can be a stressful time, one that challenges established strategies. Perhaps the best advice we can give right now is to be cautious about the information you are consuming. There is an enormous volume of “media” out there doing what they do best: selling fear and outrage. Rumors and conjecture are flying at light speed – and don’t think for one second that some of them aren’t designed to get you to believe the preferred truth of the author – or to perhaps buy something that the author is pushing. I have said before that too much media is bad for your wealth – and we have seen instances lately where it is affecting people in other ways. For some, it is actually affecting their health. Sometimes a little disconnection is the best medicine – for multiple ailments. On a separate note, we at StraightLine are excited to announce that we have added a new team member – we are pleased to welcome Zach Rivard! As you will see below, Zach has worked in several areas within financial services since 2013 and has been a licensed advisor for more than 5 years. He also earned the CERTIFIED FINANCIAL PLANNER™ designation in December, 2021. We are thrilled to have him on board! If you have questions, or if you’re just having a feeling that you need to speak with someone about all these issues, please know that we are available. Thank you for taking the time to read this note and newsletter. And as always, thank you for your continued trust in StraightLine.
Important Reminder At StraightLine, your financial well-being is our priority. If there have been any updates or changes in your financial situation since you last met with your Financial Advisor, it is important that we meet with you as soon as possible. We ask that you please contact our office at 248-269-8366 or email us [email protected] to schedule a meeting, so we can review those changes together. Fi360, a Broadridge Retirement and Workplace, Inc. owned company, licenses the designation marks Accredited Investment Fiduciary® and AIF® in the United States. Attainment of the AIF® Designation demonstrates initial and ongoing understanding of the Prudent Practices® and methodology. Designation requirements include training, exam, experience, ethics and standards components -- more information is available at https://www.straightline.com/professionaldesignations.html
Find the full blog at https://www.straightline.com/blog/the-perfect-pair-using-risk-tolerance-and-the-bucket-strategy-to-manage-risk Holiday HijinksOur team at StraightLine celebrated the holiday with a dinner at The Whitney in Detroit. The Whitney is a historical and iconic baron's mansion built in 1894, turned restaurant. It was a festive spot to celebrate the holidays with our group.
StraightLine In the News
Welcome to the Team: Zach Rivard
StraightLine Market Updates
Can't get enough of StraightLine's Market Updates?
Fourth Quarter UpdateLast year was another good one for markets, with the biggest names in the S&P 500 once again leading the way higher. The AI story has been a driving force behind much of the market’s return in the last two years, and there is little reason to believe that things will change in 2025. Elsewhere, investors will be watching to see how the Trump administration will look to implement various campaign promises. Things are evolving quickly, and the scale may end up being the focus of 2025. The scale of change in the political landscape, trying to find the appropriate level of budget cuts to scale down government debt, and the scaling up of AI, are all things we will be watching. If 2024 was the year for global elections, 2025 is the fallout. Nearly all major elections saw the incumbents either lose or end in a significantly weaker position. Here in the US, the new administration feels that it has a mandate and its ambitions will at times be at odds with an entrenched government bureaucracy designed to slow things down and take a more methodical approach. This is going to be a major point of contention and markets may get caught in the middle. However, given the highly unpredictable nature, we advocate for ignoring short-term noise and maintaining a long-term posture with the broader geopolitical backdrop in mind. Read more here. Index Descriptions: The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the USA.
The Russell 2000 Index is a stock market index that tracks roughly 2000 US small companies, and is considered a key benchmark for US small cap stocks. The MSCI EAFE Index is a stock market index that measures the performance of large- and mid-cap companies across 21 Developed markets countries around the world. Canada and the USA are not included. EAFE is an acronym that stands for Europe, Australasia, and the Far East. The MSCI Emerging Markets Index captures large and mid-cap representation across 24 Emerging Markets (EM) countries. The Bloomberg US Aggregate Bond Index, or the Agg, is a broad based, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the USA. Disclosures: Information presented is for informational purposes only. StraightLine Group, LLC (“StraightLine”) is a registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. Past performance is not indicative of future results. Investing involves risk, including the possibility of loss of principal. The ideas and opinions expressed herein do not constitute legal, tax, or investment advice or a recommendation of any particular security or strategy. Before making any investment decision, you should seek expert, professional advice and obtain information regarding the legal, fiscal, regulatory and foreign currency requirements for any investment according to the laws of your home country and place of residence. Any forward-looking statements or forecasts are based on assumptions and actual results may vary. Information presented from third parties is believed to be reliable, but no warranty is provided. StraightLine is not required to update information presented, unless otherwise required by applicable law. For more information about StraightLine, including our Form ADV Part 2A Brochure, please visit https://adviserinfo.sec.gov/firm/summary/127401 or contact us at 248-269-8366. This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. It may also be privileged or otherwise protected by work product immunity or other legal rules. If you have received it by mistake, please let us know by e-mail reply and delete it from your system; you may not copy this message or disclose its contents to anyone. Finally, the recipient should check this email and any attachments for the presence of viruses. StraightLine accepts no liability for any damage caused by any virus transmitted by this letter. Comments are closed.
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