Doug English Provides March 2025 Market and Portfolio Update
February 2025 brought with it the typical volatility expected in the first year of a new presidential cycle. Doug English shares the broad strategies ACT has in place to try to protect your investments during a market dip.
Market Recap: What Happened in February
The market followed a historically familiar pattern, with the S&P 500 dropping around 3%. Meanwhile, the bond market provided a bit of a cushion, climbing approximately 1.8% during the month. According to Doug, “The market backing up on uncertainty is typical. It’s what we expect to occur.”
In terms of your portfolios, the impact varied based on your investment strategy. The most conservative investors saw their accounts dip by about 0.75%, while those with more aggressive, all-stock portfolios experienced declines closer to 3%. Those with balanced approaches found themselves somewhere in between.
Strategic Moves: Rotating to Safety
ACT Advisors’ rotational systems are designed to respond dynamically to market conditions, and this month was no exception. The stock rotation in all portfolios shifted into cash for March, moving about 8% into the JPST cash-like instrument to add a layer of protection.
The bond rotation within retirement accounts also adopted a more conservative stance, allocating:
- One-third to cash: To enhance liquidity and reduce risk.
- One-third to TIPS (Treasury Inflation-Protected Securities): Offering a conservative hedge against inflation.
- One-third to the US Aggregate Bond Index: Providing broader bond market exposure with a cautious approach.
These strategic shifts reflect ACT Advisors’ philosophy of prioritizing asset protection in times of uncertainty. “Our rotational systems are retreating into more conservative positions because of what’s going on in the markets,” Doug explained. This kind of proactive management aims to help clients feel reassured that their assets are being managed with vigilance and care.
What Should You Do?
For most investors, the best course of action is to remain steady. “If you’re worried, we are here to help, here to reassure you, and to make decisions about if you need funds from your account,” Doug said. Now is the time to lean into your financial plan and reach out to your advisor if you have concerns.
If you need to withdraw funds, ACT Advisors will guide you on how to do so in a way that helps to minimize impact from the recent market pullback.
Looking Ahead: Staying Proactive
As we enter March, the team at ACT Advisors is closely monitoring market conditions daily. The firm’s hands-on approach allows for additional adjustments as needed to maintain stability and support your financial goals.
If you have any questions or just need some peace of mind, don’t hesitate to reach out. The ACT Advisors team is always ready to discuss your portfolio, provide insights, and guide you through uncertain times with confidence.
Doug English is the founder of ACT Advisors, a fee-only fiduciary firm with offices in Asheville, NC, and Charleston, SC, serving clients nationwide. Guided by Doug’s deep expertise and proactive approach, ACT Advisors helps clients make informed financial decisions, prioritize wealth protection, and confidently navigate market complexities. As dedicated advisors and advocates, the ACT Advisors team brings an unwavering commitment to transparency, personalized planning, and empowering clients at every stage of their financial journey.
