On Money & More – April 2025

FOR MOST OF US in Jacksonville, stocks and real estate are our biggest investments. Real estate is typically held as the value of your home. Traditionally thought of as the road map to the American dream, homeownership is largely made possible through bank financing. Stocks are a different story, as portfolios are usually built through small contributions over time. Retirement accounts, such as 401(k)s and 403(b)s, are an effective vehicle for accumulating stock market wealth. Often, these accounts are rolled over into a tax deferred “IRA Rollover” in retirement.

As retirement accounts have become the standard for funding retirement, it also means that most of us now own stocks. It’s probably a safe bet that the vast majority of Jacksonville residents have a sizable portion of their retirement funds subject to the whipsaws of the S&P 500 stock market index. At times, during a raging bull market, it can be easy (even fun) to be a stock market investor. But this isn’t always the case. As you build up your nest egg, investors often learn to handle market volatility with smaller portfolio values. Hopefully in retirement, when the stakes are higher, an investor has a more comprehensive understanding of market fluctuations and their comfort level with risk. Staying committed to your investment strategy can take fortitude, but this fortitude is typically what leads to investment success.

“Uncertainty” is the word of the day for the equity markets. The current administration is the least conventional in our lifetimes, and many investors may be tempted to translate this uncertainty into portfolio action. Our advice, however, is the opposite. Instead of reacting to the noisy realities of the day, investors should look past the noise to their own goals. Keep building your portfolio toward the future! Stocks may be volatile at times (this is what they do!), but the long-term returns for equity market investors speak for themselves. Our political environment is starkly divided, and as financial advisors we sit in the middle of many different types of client concerns. But regardless of the political environment, ownership of businesses through publicly traded equities has been the most successful long-term investment strategy. Stay diversified—investments don’t all behave the same. Stick with your plan—what are your portfolio goals and how is your portfolio built to achieve them? And finally, if you need reassurance that you are on the right path—talk to an Advisor. At Cutler, we are happy to have a conversation to help set your mind at ease.

All opinions and data included in this commentary are as of March 11, 2025 and are subject to change without notice. The opinions and views expressed herein are of Cutler Investment Counsel, LLC and are not intended to be a forecast of future events, a guarantee of future results or individual investment advice including the asset allocation provided. Nothing herein should be construed as tax advice. This article is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase or sell securities. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Investing involves risk, including the potential loss of principle. Neither Cutler Investment Counsel, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.