March 13, 2025 – We wanted to give you an update on your portfolio. Please click on the video link below to listen to the upcoming portfolio changes.
In addition to the above, we have attached a few charts that help provide context to our commentary.
Chart 1: Magnificent Seven stock sink, while defensive race ahead
Defensive stocks like healthcare and consumer staples are 2025’s top S&P 500 performers. Meanwhile, the Roundhill Magnificent Seven ETF is nearing correction territory. Note that defensives leading could suggest a shift in market positioning.
Chart 2: The importance of maintaining discipline: Reacting to market volatility can jeopardize returns
What if investors shifted to cash at the bottom of COVID downturn and stayed there until the market recovered?
Chart 3: Large Quarterly S&P500 Declines – Then What?
Since WW2, the S&P 500 has fallen more than 15% in nine different quarters. Following every single instance, the index was higher a year later with an average one-year gain of 25.1%. Similarly, the S&P 500 has had two-quarter drops of 20%+ just eight times, and over the next year, the index was up by at least 17% with gains every single time.
Chart 4: S&P 500 Corrections >5% since March 2009 Low
The S&P 500 is down over 5% from its peak on February 19, the largest pullback since last August. This is now the 30th correction >5% off of a high since the March 2009 low. They all seemed like the end of the world at the time.
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