“Successful investing is about managing risk, not avoiding it.”
-Ben Bernanke
Here’s what you need to know this week:
· Our advisor Brett Valentine is hosting an event in Edmond next Thursday, April 10th
· Stocks close the first quarter in the red
· The latest on “Liberation Day”
Client Appreciation Dinner & Market Update
Before we dive into this week’s news, I want to let everyone know about a client appreciation event we are hosting next Thursday, April 10th. This event will be hosted by my fellow advisor Brett Valentine at the Hilton Garden Inn in Edmond from 6:00-7:30 PM. This event is free to attend and includes a buffet and a raffle at the end of the evening, where three lucky winners will win restaurant gift cards!
Brett will also be covering the latest in market news and investment strategies for the current investment landscape. Please feel free to bring a friend if they could benefit from an advisor or are curious about our current market outlook. To register for the event and reserve your spot, click the link below:
· https://www.eternalwealthmgmt.com/events
First Quarter
The first quarter is officially in the books and stocks have certainly seen better days. The S&P 500 fell nearly 5% while the tech-heavy NASDAQ lost nearly 8.5%:
The selloff was sparked by uncertainty surrounding President Trump’s new tariff plan (more on that in a moment). Multiple trade partners have already responded by investing more into their own economies, particularly industrials and defense. This combination has led to European stocks having their best quarter versus US stocks in more than 16 years:
Still, there are reasons for optimism in the US stock market. The S&P 500 retested its low of the year on Monday before rebounding, marking the second time this year that the index has reached 10% below it’s all-time high. While there is no guarantee, finding repeated support at a key level such as -10% oftentimes points to exhausted sellers and marks the end of a selloff. Additionally, we will finally get clarity on the tariff plan later today.
“Liberation Day”
President Trump will officially unveil his master tariff plan this afternoon in the Rose Garden at the White House. Dubbed “Liberation Day” by the President, analysts expect a sweeping package of tariffs targeting many countries. However, the exact contours of the plan are still a mystery as Trump has held his cards close to the vest by repeatedly giving vague details and hinting at different options.
Treasury Secretary Scott Bessent has given slightly more information on the tariff package, hinting that the administration will be focused on a group of 15 nations that already have tariffs in place against the US and other nations[1].
Many of our trade partners have made hurried visits to Washington to negotiate ahead of Trump’s announcement. Canada, India and the EU have all sent trade representatives to D.C. over the past two weeks to hammer out agreements and avoid larger tariffs if possible[2]. Wall Street consensus has been that Trump plans to use tariffs largely as a bargaining tool and will remove them if certain concessions are met.
The first quarter of this year shows that stocks are not a fan of tariffs in general, but the upside is that any negotiations that reduce the tariffs will likely take pressure off the market. In fact this might be why stocks seem to have found a floor right around -10%. Investors hate ambiguity above all else, and it seems that the ambiguity will begin to clear later today.
What Else
· President Trump threatened additional tariffs on Russia if Putin does not agree to a ceasefire deal with Ukraine
· A 7.7 magnitude earthquake struck Myanmar last Friday; the death toll is estimated to be in the thousands
· Israel has countered Egypt’s ceasefire deal with additional concessions for Hamas; negotiations are ongoing
· The price of gold continues to chart new highs at $3,159/oz
· The two March Madness Final Four games take place this Saturday, April 5th
What We’re Reading
Another volcano has erupted in Iceland, the eighth such eruption since 2023. The lava flow is threatening the fishing village of Grindavik which was already damaged by a previous eruption. Click below to see photos of the eruption and the expected path of the lava flow:
What’s Happening Downtown
The Scissortail Farmers Market returns this Saturday, April 5th. The farmer’s market runs every Saturday from now through October and from 9:00 AM to 1:00 PM each week. This Saturday’s weather looks less than ideal but the market stays open unless there are severe weather conditions. Click below to learn more:
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, Brandon Ingerson, Jenni Hess