Friends,

In recent weeks, we’ve experienced a period of significant market volatility. We understand that market fluctuations can be unsettling, and we want to provide you with context and reassure you of our commitment to your long-term financial well-being.

Overview of the Last 6 Weeks
The market volatility we’ve seen in the past six weeks has been driven by a confluence of factors, including:

• Trade Tensions: Uncertainty surrounding trade negotiations, particularly between the U.S. and China, has created concerns about potential impacts on US and global economic growth.
• Economic Data: Fluctuations in economic data (as listed below) have contributed to investor uncertainty about the direction of the economy.
• Inflation Figures: Rising inflation, as measured by the Consumer Price Index (CPI), has raised concerns about potential interest rate hikes by the Federal Reserve. For example, the CPI increased by 8.5% in March, exceeding analysts’ expectations¹.
• Employment Reports: While the labor market has remained relatively strong, recent employment reports have shown some signs of slowing job growth. The U.S. Bureau of Labor Statistics reported that non-farm payroll employment increased by 428,000 in March, which was slightly below economists’ forecasts¹.
• GDP Growth: Concerns about slowing economic growth have also contributed to market volatility. The initial estimate for first-quarter GDP growth came in at a 1.4% annual rate, according to the Bureau of Economic Analysis, which was lower than the previous quarter¹.
• Market Correction: After a period of strong gains, the market was due for a correction, which is a normal part of the investment cycle.

During this period, we observed the following market movements:

• Sharp declines in growth sectors: Technology stocks, in particular, experienced significant declines, with the Nasdaq Composite Index falling into bear market territory in early May.
• Increased trading volume: Volatility was accompanied by higher-than-average trading volume, indicating investor uncertainty and active repositioning.
• Sector rotation: Investors shifted away from riskier assets like technology and growth stocks and moved into more defensive sectors, such as utilities and consumer staples.
• Weathering the volatility: Despite the market turbulence, we saw signs of resilience. For example, the S&P 500’s return to positive territory for the year on May 12, 2025, rising 0.7% to its highest close since February 28, 2025, demonstrates the potential for recovery and the importance of maintaining a long-term perspective¹.

Staying the Course

It’s important to remember that short-term market volatility is a normal part of investing. While these fluctuations can be concerning, reacting impulsively or attempting to time the market can often lead to missed opportunities and hinder your long-term financial goals.

Kendall Wealth Approach

We are committed to helping you navigate these challenging times. We have developed a personalized financial plan that aligns with your risk tolerance, time horizon, and long-term objectives. Our investment strategy emphasizes diversification and a focus on your goals, rather than reacting to short-term market swings.

We Are Here to Help

Please do not hesitate to contact us if you have any questions or concerns about your investment portfolio. We are here to provide you with the guidance and support you need to stay on track to achieve your financial goals.

Sincerely,
Anna E. Byrne
Kendall Wealth LLC

Sources

[1] Wall Street Journal, May 13, 2025.

Disclosure

This communication is for informational and educational purposes only and does not constitute investment advice or a recommendation. Past performance is not indicative of future results. Indices are not available for direct investment; their performance does not reflect the expenses associated with the management of an actual portfolio.