Market Commentary – March 2025

Richard Eller
Certified Financial Fiduciary®

Welcome to 2025—somehow, it got here faster than expected. Daylight savings is a few days away, baseball spring training has started, and the stock market continues to keep us on our toes.

Let’s break down what is happening and, more importantly, what it means for your investments.

The Tech Trap & Diversification Reminder

Tech stocks have had an incredible run, but history reminds us that no sector is invincible. The early 2000s tech bubble saw major stocks decline, though eventually there was a rebound.

While I am not predicting a crash, concentrating too much in one sector is like keeping a pet scorpion—it stings when you least expect it. A well-diversified portfolio is your best defense.

Risk management is not about reacting to trends; it is about staying ahead of them.

Inflation, Recession & Market Noise

Quick refresher: Inflation erodes purchasing power; a recession signals an economic slowdown.

With recent strong job numbers, a recession is unlikely, but not impossible. Inflation acts like an after-tax tax.

The market looks ahead, while most consumers focus on the present. That disconnect can lead to costly emotional investing decisions.

The current political headlines regarding global tariffs, domestic federal employee layoffs, and other related presidential actions have left our nation polarized.

Some see the new policies as long-overdue progress; others worry about significant economic fallouts.

Without a crystal ball, the best investment strategy is ensuring your portfolio aligns with your risk tolerance for the longer term.

Risk Tolerance & Investor Discipline

Risk tolerance is not just about how much risk you can take, but how long you can endure it.

Markets rise and fall. Investors tend to feel bold when stocks are up and anxious when they are down, but long-term success comes from consistency and discipline.

The best investors filter out the noise. There will always be headlines predicting doom or boom.

For example, companies like Coke, Johnson & Johnson, and Microsoft do not change business models based on daily stock prices—and neither should you if your portfolio aligns with your goals.

Welcome to Your Retirement Party

Picture a retirement party where four uninvited guests show up:

• Inflation & Depreciation: Quietly shrink your savings every year, without warning.
• Longevity: Sticks around as long as you do. You spend money until your last day.
• Taxation: With rising federal debt and spending, it is the never-ending withdrawal.

Together, they all nibble away at your hard-earned money.

The best defense? A clear, disciplined growth strategy that I can help craft and adjust for my clients as the landscape changes.

What We Do & Why It Matters

Our process is structured and disciplined, and we adhere to the highest fiduciary standards. That is where my team and I come in.

Behind the scenes in our offices and back-office operations in Virginia, quite a bit happens—and that is our job. And we love it.

We work hard to ensure two things for our clients: Transparency and Financial Clarity.

You should understand what you own, and why you own it. If anything is not clear, let’s talk.

Long-term investing for potential account growth is great. We all want to see balances grow over time.

However, most retirement accounts have a singularly critical function: to provide retirement income and cash flow.

At age 73, Required Minimum Distributions (RMDs) begin. The larger your retirement account, the larger your RMD—and the greater your income.

Always remember: growth investing is great, but retirement cash flow is the goal.

Beware of the News

Not all information is equal. Cable TV, newspapers, and the internet push bold headlines—but they do not always tell the full story.

Well-intentioned friends and family often turn opinions into “facts.”

That is why I urge clients to focus on fundamentals, not fear and speculation.

Mark Twain once said: “If you do not read the newspaper, you’re uninformed. If you do read the newspaper, you’re misinformed.”

What’s Ahead in 2025?

2025 brings uncertainty—interest rates, politics, and economic data will shape markets.

Growth is expected, but at a measured pace. Long-term success comes from diversification, discipline, and patience.

Final Thoughts

I am a Certified Financial Fiduciary®, which means I work for you—without conflicts of interest.

No sales pitch. Just straight talk.

For decades, I have helped clients navigate uncertainty, manage risk, and build long-term wealth.

Success comes from a clear strategy, discipline, patience, and experienced guidance—not frequent trading.

If you have questions or want to review your plan, reach out. Let us make sure your portfolio is working for you—not against you.

Thank you for your time,
Rich