Portfolio Manager, Steve Tuttle Comments on Tariffs & Market Volatility

Portfolio Manager, Steve Tuttle, comments on the market’s reaction to steel tariffs, reminds investors that volatility is nothing new, and shares how we are prepared to weather market fluctuations.

Markets are not reacting well to President Trump’s plans to announce tariffs on steel and aluminum imports next week.  This has the potential to stall economic growth, escalate trade tensions, disrupt ongoing NAFTA negotiations, and foreshadow restrictions on Chinese trade and investment.  We note that no final details have been announced, and the specifics could change over the next week. However, this confirms, in our view, that the White House has begun to shift to a more restrictive stance on trade policy.

We are closely monitoring the situation and the overall investment environment.  Trade tensions are a risk, along with others we’re watching, such as inflation, Fed rate hikes, geopolitical shocks, and stretched equity valuations.  As we’ve discussed in the past, we believe equity prices should remain resilient.  Yet, investment returns may be harder to come by, and investors may need to prepare for a period of greater volatility.  Particularly during times of stress and uncertainty, we emphasize the importance of thoughtful portfolio construction, having a robust financial plan, and exercising patience and discipline.    

Despite a relatively calm 2017, we all know that volatility in equity markets is nothing new.  The fact that stocks are volatile is one of the reasons stocks typically provide higher long-term market returns than historically less volatile asset classes.  The chart below reminds us that pullbacks are normal, and don’t signal a bad year for stocks.      

pull back picture

U.S. Equity: S&P 500® Index.   Source: Morningstar. Returns calculated with dividends included. Maximum peak-to-trough represents the return difference between the largest peak-to-trough of the calendar year. Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Indexes are unmanaged and cannot be invested in directly.

We recognize that market fluctuations can be unnerving.  However, if your personal situation hasn’t changed, our market strategy hasn’t either.  We believe our active approach, based on data, research, and common sense will continue to benefit our clients.  We are available if you need to talk. 

Steve Tuttle



Past performance may not be indicative of future results. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that their future performance will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. The statements made in this newsletter are, to the best of our ability and knowledge, accurate as of the date they were originally made. But due to various factors, including changing market conditions and/or applicable laws, the content may in the future no longer be reflective of current opinions or positions. Any forward-looking statements, information and opinions including descriptions of anticipated market changes and expectations of future activity contained in this newsletter are based upon reasonable estimates and assumptions. However, they are inherently uncertain and actual events or results may differ materially from those reflected in the newsletter. Nothing in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice. Please remember to contact Signet Financial Management, LLC, if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and/or services. No portion of the newsletter content should be construed as legal, tax, or accounting advice. A copy of Signet Financial Management, LLC’s current written disclosure statements discussing our advisory services, fees, investment advisory personnel and operations are available upon request.

Contact | Careers | Disclaimer | Client Login
© 2018 Signet Financial Management, LLC
Site by Sondhelm Partners

Main Office

400 Interpace Pkwy
Building C, 2nd Floor
Parsippany, NJ 07054