A Slow Quarter for Stocks and Bonds
Stocks were mostly positive with the exception of US Large Caps.
U.S. Large Cap: -4.79%
U.S. Small Cap: +1.93%
International Developed: +2.76%
Emerging Markets: +0.54%
The bond market was flat with the best return from inflation-protected bonds and worst coming from corporate bonds:
Short-Term Inflation-Protected: +0.99%
Intermediate-Term Corporate: -0.45%
International Bonds (Intermediate): -0.12%
Long-Term Treasury: -0.09%
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Financial Risk Management
The world can feel increasingly unpredictable. Between geopolitical tensions, economic surprises, advances in AI, and countless other unknowns, it’s easy to feel like we’re living in a constant state of risk. While that feeling is understandable, it’s important to remember that risk in the economy is not new—it is always present.
The stock market, at its core, is a forward-looking mechanism. It prices companies based on expectations of future earnings. When those expectations shift—sometimes suddenly—markets can react with volatility. That’s a normal part of investing, even if it feels uncomfortable in the moment.
Beyond the markets, there are personal risks that can affect your financial life: liability from everyday activities like driving, the possibility of living longer than expected (especially with higher healthcare costs), job loss, and more. Many of these risks can be managed with thoughtful planning. If you’d like to discuss your situation, we’re always available to help you think through both economic and personal risks.
Insurance can play an important role in managing certain risks, and we’re happy to provide guidance. As independent financial planners who do not sell insurance products, our advice is objective—we’ll never recommend coverage you don’t truly need.
Unfortunately, much of the financial industry is built around amplifying fear and encouraging unnecessary action. Investors are often persuaded to move money out of the stock market into high-cost products like annuities, or into complex strategies that promise downside protection with full market upside. In our experience, after watching these approaches come and go over the past 20 years, they rarely deliver on those promises in a consistent and meaningful way.
Ironically, one of the most effective investment strategies is also the simplest: stay disciplined and avoid reacting to short-term fear. Market declines are painful, but they are also a natural part of long-term growth. For patient investors, periods of volatility can even present opportunities to buy quality investments at more attractive prices.
A final note on risk management: much of today’s financial fraud depends on gaining your trust. A simple rule can go a long way—never provide personal or financial information to anyone who initiates contact with you, whether in person, by phone, or online. If something sounds interesting, take the time to verify it independently. While it would be nice to trust everyone, caution is essential in today’s environment. If something feels unusual or urgent, pause.
We are always here as a resource. Please reach out if you receive a message or request you are unsure about—we are happy to provide a second opinion before any action is taken.