Market Perspectives- March 2025

09/04/2025

Investment Insights

Breathe….Remain Calm….

The US Stock market has been very visible in the news in recent days. The market is facing significant challenges including on-again off-again tariffs with some of our largest trading partners, heightened fears of recession and general concerns around the current political environment. As long-term investors it is important to maintain objectivity and perspective. The single most important aspect of your investment portfolio is a well-diversified asset allocation strategy.

A well-diversified portfolio spreads risk across different asset classes (stocks, bonds, alternatives), reducing the impact of poor performance in any single asset category. Balancing investments according to your risk tolerance can prevent overexposure to market volatility or specific sectors.
Proper asset allocation aligns your investments with your time horizon and financial objectives.
An established asset allocation strategy can prevent you from making impulsive decisions based on market fluctuations. A stable asset allocation strategy provides a consistent approach, reducing the likelihood of making costly changes based on short-term market noise.
By strategically allocating assets, you can optimize the risk-return trade off, increasing the likelihood of achieving your desired investment return.

Bank of New Hampshire portfolio updates

As equity markets have provided strong returns over the last couple years, we have been reducing equity positions in client accounts, so they do not grow to outsized positions.
The ultimate driver of long-term equity markets returns are earnings. We believe the companies we own in client accounts have solid business models with the ability to generate and grow both earnings and free cash flow over the long term.
In summary we believe the investment policy you created for your account working with your Wealth team at Bank of New Hampshire prepares us for how we respond to challenging market conditions. We focus on the long term, maintaining diversification while continually monitoring your portfolio and making appropriate adjustments.
We appreciate the anxiety that comes with turbulent markets and are happy to discuss this with you.