RZH Insights: A True Test of Investor Resolve
What a remarkable time to be an investor. Depending on your perspective, the past five weeks have been either deeply unsettling or profoundly instructive. They’ve brought waves of panic – but also powerful reminders of timeless investment truths.
For me personally, this has been one of the most emotionally taxing periods of my 33-year career. It’s not the volatility – we’ve seen plenty of that before. What’s been most challenging is the level of fear and anxiety expressed by clients, even those with solid plans and well-constructed portfolios. The conversations I’ve had in recent weeks have often been emotional, very personal, sometimes painful, and a real test of my own resilience as an advisor.
Over the past month, markets have tempted investors into making the classic and costly mistake: abandoning their long-term strategy under the belief that “this time is different.” If you’re a client or friend of RZH, you know our firm is grounded in conviction – conviction in our disciplined planning and investment process. I have unwavering confidence in the great companies we invest in to navigate through the perennial problems, challenges and black swans that come our way, no matter how chaotic or unique they may appear. And while I have more tempered faith in government responses, I believe strongly in the resilience and adaptability of the global economy over time.
At RZH, we believe success in investing demands discipline, emotional detachment, and a long-term mindset. That doesn’t mean ignoring reality – far from it. Unpredictability and disorder seem to be embedded in this administration’s approach to policy and negotiation. My newsletter on April 4th recognized this and outlined our plan. The market continued falling and bottomed on April 7th. The very next day, we delivered this newsletter advocating caution and patience.
Since that low on April 7th the S&P 500 Index has surged more than 20%1 and the tech-oriented NASDAQ Index gained over 26%2 – both delivering two years’ worth of returns in just over a month. These dramatic reversals reaffirm everything we believe in: thoughtful goal-based planning, strategic allocation, and the importance of staying the course. The best market returns often directly follow the worst, and the timing of these turnarounds is virtually impossible to predict.
Of course, we’re not declaring victory – we are far from “out of the woods.” But we are more confident than ever in the durability of our investment philosophy and the strength of our client relationships. Our mission remains clear: to make market volatility irrelevant to your financial security, and to help you embrace life fully, supported by a plan built to weather any storm.
We don’t know what the next five weeks will bring – let alone the next five days. But what we do know is this: everyone at RZH is prepared, steadfast, and honored to be your trusted partner through it all.
Best regards,
Carl J. Zuckerberg, CFP®, AIF®, CIMA®
Principal, Chief Investment Strategist
[1] Performance of the S&P 500 Index as measured from the intraday low (4,835.04) on April 7, 2025, through market close (5,844.18) on May 12, 2025.
[2] Performance of the NASDAQ Index as measured from the intraday low (14,784.03) on April 7, 2025, through market close (18,708.34) on May 12, 2025.