RZH Insights: The Hurricane Has Come Ashore
For much of this year, the markets have been hinting at turbulence on the horizon. Like seasoned meteorologists, pundits have speculated about the storm’s trajectory. We’ve seen early warnings…there’s been heavy surf, gusty winds and even the occasional thunderstorm. Yet the skies stayed mostly sunny, and it looked as though the “tariff storm” would perhaps drift out to sea. Then, on Wednesday night, the lingering low-pressure system suddenly intensified into a full-blown hurricane and turned directly towards us!
What’s going to happen next?
The honest answer is… no one truly knows – not even the policymakers steering the ship in Washington! As I surveyed the financial media earlier this week many “experts” claimed their “inside sources” said President Trump would take a moderate, less aggressive, approach to tariffs. The stock market rallied three days prior, forecasting nothing more than a passing squall.
What do we do?
Feelings of worry, bouts of anxiety, even a sense of panic are all normal reactions. Frustration and regret are also common as we think “how did we not see this coming”. It’s completely natural to ask, “what should we do now” and “how do we protect ourselves”. These emotions often drive the impulse to act, to “do something” in hopes of regaining control or limiting damage. But in moments like these, taking rash action can often do more harm than good.
Fortunately, clients of RZH have already asked – and we have answered – these tough questions well in advance by building hurricane-resistant portfolios. Just as homeowners along the Gulf Coast build their properties with concrete walls, storm shutters, and metal roofs, we’ve helped fortify your financial house against storms like this one. And like any storm-tested home, while you may still hear the howling winds or feel the ground tremble, our approach aims to provide stability where it matters most. Yes, there may be some terrifying moments – perhaps even the urge to flee – but history has taught us that stepping outside during a hurricane is almost always the wrong move.
History has also shown us that we shouldn’t try to outsmart the hurricane and abandon our thoughtfully-crafted portfolios – designed well before the storm appeared on the radar. They have been engineered and stress-tested against past storms (using the financial plan, cash flow models and Monte Carlo simulations). They are built with the highest quality materials (investment grade bonds and blue-chip stocks) and have ample rations to maintain life for extended periods of time (years’ worth of cash and equivalents). The reason we take such care in crafting a well-diversified, disciplined investment plan is precisely for moments like this. Volatility isn’t a surprise – it’s an expected part of the journey.
No two hurricanes are exactly alike, but one truth remains: they all eventually pass. This one will too.
At RZH, we hear your concerns and deeply understand the emotional weight of uncertainty. We’re here for you – not just as advisors, but as friends. If you have questions or want to talk through your specific situation, please don’t hesitate to reach out.
While these times may feel unsettling for all of us, we’re grateful for the opportunity to stand with you – now and always. On behalf of the entire RZH team, thank you for your continued trust and friendship.
Best regards,
Carl J. Zuckerberg, CFP®, AIF®, CIMA®
Principal, Chief Investment Strategist